TIFF Investment Program
Investment management for foundations
SEMI-ANNUAL REPORT
June 30, 1995
August 24, 1995
Dear TIP Member:
We are pleased to present the Semi-Annual Report to
Members of the TIFF Investment Program, Inc. (TIP). As you
know, TIP is a family of multi-manager, commingled funds open
exclusively to foundations and other 501(c)(3) organizations except
educational endowments.
TIP currently has six Funds in operation: Multi-Asset,
International Equity, Emerging Markets, U.S. Equity, Bond, and
Short-Term. All of TIP's Funds enable member foundations to
delegate to TIP responsibility for the time-intensive tasks of
selecting money managers and other vendors. The Multi-Asset
Fund goes beyond this by providing Members with an opportunity
to also delegate to TIP responsibility for the all-important task of
asset allocation. A seventh Fund, the TIFF Global Equity Fund,
will commence operations as soon as adequate capital commitments
have been received.
We are very gratified by the favorable reception that TIP
has received from the not-for-profit community. We are engaged in
active discussions with numerous organizations throughout the
United States that have expressed interest in learning more about
TIP, and would welcome the opportunity to discuss this exciting
new initiative with other eligible investors.
For further information about the TIFF Investment
Program, please call us at 800-984-0084.
Sincerely,
by: \s\ David A. Salem
David A. Salem
President
TIFF Multi-Asset Fund
Overview and Performance Graph 1
Statement of Assets and Liabilities and Schedule of Investments 2-6
TIFF International Equity Fund
Overview and Performance Graph 7
Statement of Net Assets 8-17
TIFF Emerging Markets Fund
Overview and Performance Graph 18
Statement of Assets and Liabilities and Schedule of Investments 19-29
TIFF U.S. Equity Fund
Overview and Performance Graph 30
Statement of Net Assets 31-43
TIFF Bond Fund
Overview and Performance Graph 44
Statement of Net Assets 45-49
TIFF Short-Term Fund
Overview and Performance Graph 50
Statement of Net Assets 51-52
Statement of Operations 53-55
Statement of Changes in Net Assets 56-58
Financial Highlights 59-61
Notes to Financial Statements 62-72
TIFF MULTI-ASSET FUND
Graph: Comparison of change in value of $10,000 investment in TIFF
Multi-Asset Fund and the TIFF Constructed Index where the Y-axis ranges
from $10,000 to $10,462 and the X-axis ranges from 3/31/95 to 6/30/95.
Performance Evaluation
The Fund completed its first quarter of operations with a nominal return of
3.7% (3% net of inflation), underperforming its idiosyncratic benchmark by
0.9% but outperforming nicely its goal of generating a 5% or higher inflation-
adjusted return per annum. The chief reason for the 0.9% deficit was the
managers' reluctance to dump large cash inflows into the soaring U.S. stock
market.
Eligibility
A portion of the Fund's assets is invested through partnerships that are open
exclusively to "accredited investors." Accordingly, all Multi-Asset Fund
holders must themselves pass SEC-mandated accredited investor tests: such
organizations must either have minimum endowment assets of $1 million or
invest at least $500,000 through TIP. The $500,000 need not be invested
entirely in this Fund.
Policy Considerations
All TIFF Funds enable Members to delegate to TIP responsibility for the time-
intensive tasks of selecting money managers and other vendors. The Multi-
Asset Fund goes beyond this by providing Members with an opportunity to
delegate responsibility for the all-important task of asset allocation. The
Fund's return objective is to produce a five percent inflation-adjusted return
with sufficient consistency to induce its holders to "stay the course": to
adhere to investment policies that comport better with their goal of preserving
endowment purchasing power to than do policies that place more emphasis on
controlling short-term volatility. The Fund seeks to outperform its benchmark
through three means: (1) active security selection within asset class segments;
(2) strategic and tactical shifting of funds among permissible asset classes;
and (3) judicious use of other commingled investment vehicles. The first and
second tools are wielded not by TIP's directors but rather by outside money
managers that they select. Some of these managers are specialists chosen for
their perceived ability to add value within a specific asset class (e.g.,
Wellington serves as the Fund's resource-related equities specialist, and
remains more or less fully invested in such stocks). Other managers are
generalists that seek to outperform their benchmarks through both asset
allocation shifts and active security selection (e.g., Shilling). The reasons
underlying the Fund's use of the third tool (other commingled vehicles) are
discussed in detail in a brochure about the Fund that is available upon request.
TIFF MULTI-ASSET FUND - STATEMENT OF ASSETS AND LIABILITIES
AND SCHEDULE OF INVESTMENTS
June 30, 1995 (Unaudited)
Shares Value +
Long-Term Investments - 67.2%
Common Stock - 41.0%
U.S. Common Stock -22.7%
Aerospace - 0.8%
Loral Corp. (a) 9,000 $465,750
Chemical - 1.6%
EMC Corp., Mass (a) * 38,500 933,625
Computers - 4.5%
Apple Computer, Inc. (a) 31,500 1,462,780
Dell Computer Corp. (a) * 10,000 601,250
Informix Corp. (a) * 20,800 527,800
Total 2,591,830
Construction - 0.2%
J Ray McDermott S.A. * 5,500 121,688
Container - 0.8%
Jefferson Smurfit Corp. (a) * 35,000 459,375
Electrical Utilities - 2.2%
Idaho Power Co. (a) 12,800 323,200
Kansas City Power & Light Co. (a) * 20,400 466,650
Montana Power Co. (a) 21,000 483,000
Total 1,272,850
Electronics - 0.4%
Nexgen, Inc. (a) * 10,000 236,250
Household - 0.4%
Catalina Lighting, Inc. * 38,600 221,950
Metals - 1.7%
ALCOA 5,700 285,712
Alumax, Inc. * 7,000 217,875
J & L Specialty Steel, Inc. 9,000 173,250
Phelps Dodge Corp. 5,200 306,800
Total 983,637
Mining - 0.4%
Newmont Mining Corp. 5,500 230,313
Motor Vehicles - 0.8%
General Motors Corp. Class H (a) 11,300 446,350
Oil/Gas Exploration - 2.3%
Apache Corp. 6,000 $164,250
Louisiana Land & Exploration Co. 4,000 159,500
Noble Affiliates, Inc. 6,500 165,750
Oryx Energy Co. * 16,000 220,000
Pogo Producing Co. 7,500 171,562
Santa Fe Energy Resources, Inc. * 20,000 190,000
Vastar Reources, Inc. 8,000 247,000
Total 1,318,062
Oil Services - 2.1%
Baker Hughes, Inc. 10,000 205,000
BJ Services Co. * 8,500 193,375
Camco International, Inc. 9,500 222,063
Ensco International, Inc. * 12,000 190,500
Noble Drilling Corp. * 25,000 184,375
Texaco, Inc. 3,000 196,875
Tuboscope Vetco Intl Corp. * 3,500 22,312
Total 1,214,500
Retail Outlet - 2.1%
Barnes & Noble, Inc. (a) * 27,000 918,000
Bon-Ton Stores, Inc. * 29,000 302,688
Total 1,220,688
Telecommunications - 2.4%
Nextel Communications, Inc. - A (a) * 65,000 918,125
Sprint Corp. (a) 13,900 467,388
Total 1,385,513
Total U.S. Common Stock - (Cost -$12,460,811) 13,102,381
Foreign Common Stock - 18.3%
Canada - 4.0%
Agnico Eagle Mines Ltd. 15,000 198,750
Barrick Gold Corp. 9,600 242,400
Canadian Natural Resources Ltd. * 14,000 164,373
Chauvco Resources Ltd. - Class A * 10,000 113,768
Franco-Nevada Mining Corp., Ltd. 3,000 156,182
Home Oil Co., Ltd. * 17,000 218,875
Imax Corp. (a) * 41,000 456,125
Nowsco Well Service Ltd. 13,500 131,625
Pancanadian Petroleum Ltd. 5,500 188,219
Placer Dome, Inc. 9,800 256,025
Talisman Energy, Inc. * 11,000 204,236
Total 2,330,578
Finland - 0.7%
Benefon OY * 11,500 435,942
France - 2.0%
Elf Aquitaine - ADR (a) 11,000 $409,750
Equipements et Composants pour Industrie
Automobile 3,500 480,442
Total Compagnie Francaise des Petroles - ADR 8,000 242,000
Total 1,132,192
Germany - 0.8%
Commerzbank AG (a) 1,900 454,133
Hong Kong - 1.7%
Hung Hing Printing Group Ltd. 2,400,000 524,160
Sinocan Holdings Ltd. 1,621,000 460,850
Total 985,010
Indonesia - 0.1%
PT Kedaung Indah Can 100,000 85,355
Italy - 0.6%
Industria Machine Automatic 70,000 331,345
Netherlands - 0.9%
Van Melle NV 7,500 491,446
Norway - 1.6%
Kverneland Gruppen S.A. 31,350 475,385
Norsk Hydro SA - ADR (a) 11,000 459,250
Total 934,635
Sweden - 1.3%
IRO AB * 50,000 505,148
Skane-Gripen AB 24,750 217,728
Total 722,876
Switzerland - 0.9%
Union Bank of Switzerland 500 518,696
Thailand - 1.9%
Siam City Bank Public Co. Ltd. 500,000 587,650
Thai Theparos Food Products * 145,000 511,241
Total 1,098,891
United Kingdom - 1.8%
JBA Holdings plc 175,000 431,340
Powerscreen International plc 90,000 457,973
Premier Consolidated Oilfields - ADR * 400,000 162,200
Total 1,051,513
Total Foreign Common Stock - (Cost - $10,046,186) 10,572,612
Total Common Stock - (Cost - $22,506,997) 23,674,993
Commingled Investment Vehicles - 12.9%
Euro-Partners Arbitrage Fund Limited Partnership 1,584 $2,141,616
GMO Currency Hedged International Bond Fund 90,009 993,699
Farallon Capital Partners Limited Partnership 3,200 3,290,613
Highbridge Capital Corp., Limited Partnership 780 1,023,207
Total Commingled Investments (Cost - $7,300,000) 7,449,135
Preferred Stock - 0.8%
Sto AG (Germany)
Total Preferred Stock (Cost - $399,079) 726 451,127
Face
Amount
U.S. Treasury Securities - 14.2%
U.S. Treasury Note, 6.875% due 3/31/00 $1,500,000 1,552,500
U.S. Treasury Bond, 7.625% due 2/15/25 (a) 5,000,000 5,640,626
Total U.S. Treasury Securities (Cost - $7,203,013) 7,193,126
Contracts
Long Options - 0.1%
Sept '95 Japanese Yen $125.50 Call expiring 9/30/95 11 10,588
Sept '95 Japanese Yen $126.00 Call expiring 9/30/95 12 10,500
Sept '95 Japanese Yen $126.50 Call expiring 9/30/95 12 9,600
Sept '95 Nikkei Index 1550 Call expiring 9/30/95 10 21,816
Sept '95 Nikkei Index 1600 Call expiring 9/30/95 4 5,189
Total Long Options (Cost - $102,721) 57,692
Total Long-Term Investments - (Cost - $37,511,810) 38,826,073
Short-Term Investments - 16.8%
Face
U.S. Treasury Securities - 5.1% Amount
U.S. Treasury Bill 5.650% due 7/6/95 # ++ $500,000 499,607
U.S. Treasury Bill 5.700% due 7/6/95 # ++ 72,000 71,943
U.S. Treasury Bill 5.570% due 8/3/95 # ++ 100,000 99,489
U.S. Treasury Bill 5.674% due 8/10/95 # 2,000,000 1,987,392
U.S. Treasury Bill 5.350% due 12/14/95 # ++ 50,000 48,767
U.S. Treasury Bill 5.390% due 12/14/95 # ++ 15,000 14,627
U.S. Treasury Bill 5.420% due 12/14/95 # ++ 75,000 73,126
U.S. Treasury Bill 5.500% due 12/14/95 # ++ 130,000 126,703
Total U.S. Treasury Securities (Cost - $2,921,654) 2,921,654
Other Short-Term Investments - 11.7%
Bank of Boston (Nassau) Time Deposit,
6.280% due 7/3/95 2,000,000 2,000,000
Bank of Ireland (Cayman) Time Deposit,
6.210% due 7/3/95 2,558,400 2,558,400
Harris Bank Time Deposit, 5.860% due 7/3/95 1,050,000 1,050,000
Prudential Securities Repurchase Agreement,
5.780% due 7/3/95 1,167,615 1,167,615
Issued 6/30/95 (collateralized by
$1,277,437 FNMA Strip Tranche,
6.500% due 3/01/09 with a market
value of $1,202,692)
Total Other Short-Term Investments (Cost - $6,776,015) 6,776,015
Total Short-Term Investments - (Cost - $9,697,669) 9,697,669
Total Investments - 84.0% (Cost - $47,209,479) 48,523,742
Other Assets and Liabilities - 16.0%
Cash 13,347,872
Other assets 3,551,452
Collateral on loaned securities -4,558,400
Market value of securities sold short (Cost - $1,401,054) -1,382,099
Payable for Money Manager fees -4,252
Other accrued expenses and liabilities -1,744,686
Other assets and liabilities, net 9,209,887
Net Assets - 100.0%
Applicable to 5,567,323 outstanding $.001 par value shares
(authorized 500,000,000 shares) $57,733,629
Net asset value per share $10.37
Components of Net Assets as of June 30, 1995 were as follows:
Capital stock at par value ($.001) $5,567
Capital stock in excess of par value 56,186,414
Undistributed net investment income 392,204
Accumulated net realized gain on investments, financial
futures and options contracts, short sales
and foreign currency-related transactions 191,122
Net unrealized appreciation on investments, financial
futures and options contracts, short sales
and on assets and liabilities
denominated in foreign currency 958,322
$57,733,629
Short Portfolio - (2.4%)
Transportation - (1.6%)
CSX Corp. 6,100 $458,262
Conrail 8,300 461,687
Total 919,949
Telecommunications - (0.8%)
Telefonos de Mexico - ADR 15,600 462,150
Total Short Portfolio (Cost - $1,401,054) $1,382,099
* Non-income producing security
+ See Note 2 to the Financial Statements
++ Assets currently held in a segregated account as
collateral for financial futures contracts.
# Interest rate represents yield to maturity at the time of purchase
(a) This security or a portion of this security is held in a segregated
account as collateral for the short portfolio
INTERNATIONAL EQUITY FUND
GRAPH: COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENTS
IN TIFF INTERNATIONAL EQUITY FUND AND THE MSCI ALL COUNTRY
WORLD EX USA STOCK INDEX WHERE THE Y-AXIS RANGES FROM
$9,000 TO $10,000 AND THE X-AXIS RANGES FROM 5/31/95 TO 6/30/95.
Performance Evaluation
Following a difficult quarter in which its bias in favor of Europe-based multi-
national exporters hampered returns, the Fund performed extremely well
during the 2Q 1995 (+5.2% net of fees), outperforming the MSCI All Country
World ex US Index (its primary benchmark) by 3.6% and the MSCI EAFE
Index by an even more robust 4.5%. As has been true since the Fund's
inception, the Fund both entered and exited the quarter with an underweighting
in Japanese stocks, a bias that paid off especially well this quarter (MSCI
Japan Index down 8.0% in yen terms, 6.3% in dollar terms). In contrast to 1Q
1995, when the enormous strength of their home currencies produced a sharp
selloff in shares of the German, Swiss, and Dutch multi-nationals in which the
Fund is heavily invested, the second quarter produced modest declines in the
foreign exchange value of the deustchmark and related currencies, and major
problems for speculators who had bet heavily that the Continent's leading
exporters would continue to forfeit market share due to pricing problems.
From its inception on May 31, 1994 through June 30, 1995, the Fund has
outperformed the benchmark by 120 basis points net of fees (3.8% vs. 2.6%).
Policy Considerations
The Fund is designed as a core vehicle for that portion of a foundation's assets
committed to foreign stocks. Its benchmark comprises virtually all non-U.S.
markets in which stocks trade on a regular basis. The vast size of this
opportunity set translates into potentially higher long-term returns for
international (or global) portfolios than for strictly domestic ones,
reinforcing the case for a material commitment by long-term investors to
non-U.S. stocks. At the same time, the breadth of the Fund's selection
universe renders most generalizations about the intrinsic appeal of its
holdings false. In an effort to guard against a reversal of the U.S. dollar's
recent weakness, the Fund's managers have hedged a portion of the Fund's
foreign currency exposure back into the greenback. By June 30, 1995, this
hedging activity had boosted the Fund's effective "dollar bloc" exposure to
31.7%: 14.2% via hedges, and the remainder via holdings in foreign countries
whose currencies are linked to the U.S. dollar. This 31.7% weighting
represented a 15.9% tilt in favor of the dollar relative to its effective
neutral weighting in the Fund's benchmark of 15.8%.
TIFF INTERNATIONAL EQUITY FUND - STATEMENT OF NET ASSETS
June 30, 1995 (Unaudited)
Shares Value+
Long-Term Investments - 89.4%
Common Stock - 81.7%
Argentina- 0.5%
Quilmes Industries SA 35,000 $682,500
Australia - 3.0%
Australia & New Zealand Banking Group Ltd. 155,603 552,390
Australian National Industries Ltd. 232,080 201,028
CSR Ltd. 115,991 364,003
Eastern Aluminum Ltd. 116,000 94,714
Gio Australian Holdings Ltd. 185,123 343,051
National Australia Bank Ltd. 60,206 475,338
North Ltd. 96,011 231,771
Pacific Dunlop Ltd. 178,020 374,127
QNI Ltd. 118,000 160,858
Renison Goldfields Consolidated Ltd. 56,716 179,194
Santos Ltd. 225,653 541,522
Wesfarmers Ltd. 27,542 174,429
Total 3,692,425
Austria - 0.2%
BWT Stamm AG * 950 115,122
Mayr-Melnhof Karton AG * 2,500 144,544
Total 259,666
Belgium - 0.9%
Electrabel SA 3,000 634,636
G.I.B. Holdings Ltd. 10,400 494,192
Total 1,128,828
Bermuda - 0.4%
PartnerRe Ltd. 18,000 470,250
Canada - 1.8%
British Columbia Telecom, Inc. 25,500 436,325
Canadian General Investments Ltd. 800 16,674
Imperial Oil Ltd. 32,400 1,202,917
Noranda, Inc. 15,000 294,888
Rogers Communications, Inc. Class B * 23,500 269,496
Total 2,220,300
Denmark - 0.2%
Bang & Olufsen Holding AS 'B' 600 162,162
Coloplast AS 'B' 1,300 97,464
Total 259,626
Finland - 0.7%
Kansallis-Osake-Pankki * 76,100 82,804
Nokia AB 6,400 374,401
Outokumpo Oy 'A' * 13,800 229,273
Unitas Bank Ltd. 'A' * 67,000 216,356
Total 902,834
France - 6.6%
Alcatel Alsthom (Cie Gen El) SA 5,300 477,870
Axa SA 4,275 231,200
Banque National de Paris 4,009 193,644
Boiron SA 725 71,385
Carrefour Supermarche 400 205,181
Cie Generale des Eaux SA 14,200 1,582,822
CIPE France SA 3,825 201,337
Clarins SA 1,200 113,201
Coflexip ADR * 28,500 723,188
Dollfus-Mieg & Cie SA 1,500 84,529
Emin-Leydier SA 1,775 224,967
Financiere et Industrielle Gax et Eaux SA 1,590 620,312
Grandoptical Photoservices SA * 3,000 277,428
IDIA Stores SA 22,000 598,990
Lectra Systemes SA * 80,000 253,480
M6- Metropole Television SA * 2,000 159,356
Moulinex * 8,000 193,704
NRJ SA 2,000 177,521
Pechiney SA 3,300 190,527
Sainte Guilbert SA 2,500 250,800
Sidel SA 1,000 350,707
Sidergie SA 2,250 403,138
Societe National Elf-Aquitaine 7,160 529,850
Union Financiere de France Banque SA 600 51,894
Total 8,167,031
Germany - 4.8%
Bayer AG 1,330 330,578
Buderus AG 300 144,147
Buyerische Motoren Works AG 300 119,220
Deutsche Bank AG 17,600 854,566
Deutsche Bank Ordinary Shares AG 3,000 145,665
Hochtief AG 1,676 922,769
Leifheit AG 320 152,832
Linde AG 1,798 1,065,288
Mannesmann AG 600 183,165
Marschollek, Lautenschlaeger Und Partner AG 210 147,030
Muenchener Rueckversicherungs-Gesellschaft 230 503,540
Porsche AG 300 130,600
Rhon Klinikum AG 162 188,454
RWE AG 1,150 399,259
Siemens AG 750 372,020
Veba AG 300 117,811
Wella AG 200 161,850
Total 5,938,794
Hong Kong - 3.0%
Hong Kong Electric Holdings Ltd. 130,000 $ 441,883
Hong Kong Telecommunications Ltd. 157,200 310,847
Hutchison Whampoa Ltd. 325,000 1,570,953
Jardine Strategic Holdings Ltd. 100,812 324,615
Johnson Electric Holdings Ltd. 200,000 403,240
Mandarin Oriental International Ltd. 297,849 297,849
Television Broadcasts Ltd. 116,000 407,786
Total 3,757,173
India - 0.0% ++
Shiriram Industrial Enterprises Ltd. GDR * 2,000 56,780
Indonesia - 0.6%
PT Astra International Ltd. 54,400 96,533
PT Bank Internasional Indonesia Ltd. 35,000 108,098
PT Indonesian Development Fund Ltd. * 15,400 123,200
PT Wicaksana Overseas International Ltd. * 150,000 421,154
Total 748,985
Ireland - 0.7%
Greencore Group plc 37,000 277,626
Irish Continental Group plc 20,000 147,446
Smurfit (Jefferson) Group plc 47,500 143,189
Unidare plc 50,000 266,360
Waterford Wedgewood * 80,000 69,464
Total 904,085
Italy - 1.0%
Editoriale La Republica SpA 35,000 41,398
Fila Holdings SpA - ADR 12,200 303,475
Gabetti Holdings SpA 22,000 19,901
Industrie Natuzzi SpA - ADR 13,800 457,125
Olivetti Group * 153,700 149,842
R.A.S. SpA D Risp Port 28,580 179,360
R.A.S. SpA 420 4,437
Stet Societa Finanziaria Telefonica 60,300 133,649
Total 1,289,187
Japan - 17.7%
Amano Corp. 24,000 283,020
Canon, Inc. 70,000 1,139,152
Canon Sales Co., Inc. 33,000 914,506
Chiyoda Fire & Marine Insurance Co. 60,000 337,500
Dai Nippon Printing Co. Ltd. 26,000 413,915
Dai Nippon Screen Manufacturing 40,000 268,868
Daishinku 22,000 227,005
East Japan Railway Co. 94 482,193
Eisai Co. Ltd. 28,000 478,775
Fijitsu Denso * 15,120 276,368
Fuji Oil 31,000 232,500
Fuji Photo Film 20,000 $ 474,056
Futaba 8,000 362,264
Gakken * 57,000 350,202
Heiwa Corp. 12,000 273,113
Hitachi Ltd. 51,000 508,195
Ito-Yokado Co., Ltd. 18,000 948,821
Kanematsu Corp. 100,000 377,360
Kao Corp. 34,000 408,962
Kawasho Corp. * 60,000 247,644
Koa Oil Co., Ltd. 38,000 265,730
Konica Corp. 40,000 244,812
Kyokuto Boeki 28,000 198,114
Matsushita Electric Industrial Co. 30,000 466,980
Mitsubishi Heavy Industries, Ltd. 166,000 1,127,555
Mitsubishi Trust & Banking 26,000 367,923
Mitsui & Co. 78,000 608,915
Mitsui Fudosan 20,000 229,010
Mitsui-Soko 28,000 203,067
Mitsui Trust & Banking 50,000 459,905
Navix Line * 66,000 140,870
Nichimo (Fishing) * 50,000 217,570
Nippon Denso 62,000 1,125,945
Nippon Oil Co. Ltd. 52,000 326,841
Nippon Suisan Kaisha Ltd. * 64,000 302,643
Nippon Telegraph and Telephone Corp. 62 519,104
Sankyo Seiko * 36,000 270,000
Sanwa Bank Ltd. 30,000 566,037
Showa Aircraft Industry 11,000 112,853
Sintokogio 34,000 254,599
Sony Music Entertainment Inc. 4,000 169,340
Sumitomo Rubber Industries 50,000 371,460
Sumitomo Trust & Banking 38,000 461,556
Tanabe Seiyaku 26,000 194,386
Toda Construction Co. 22,000 193,019
Toho Co. 2,400 399,057
Tokyo Broadcasting System 28,000 399,529
UBE Industries Ltd. * 56,000 195,474
Wacoal Corp. 36,000 445,756
Yamaha Corp. 54,000 589,033
Yamaha Motor Co., Ltd. 42,000 305,096
Yamazaki Baking Co., Ltd. 22,000 451,416
Yasuda Fire & Marine Insurance 62,000 387,500
Yushiro Chemical Industry 20,000 211,084
Total 21,786,598
Malaysia - 3.4%
Carlsberg Brewery - Malay Berhad 46,000 217,069
Malaysian Airline System Berhad 40,000 135,412
Nestle (Malaysia) Berhad 188,000 1,442,599
Nylex (Malaysia) Berhad 295,000 913,940
Resorts World Berhad 40,000 234,716
Sime Darby Berhad 337,800 942,563
United Engineers (Malaysia) Ltd. 46,000 292,574
Total 4,178,873
Mexico - 0.1%
Telefonos de Mexico 'L' - ADR 6,200 183,675
Netherlands - 5.5%
Aalberts Industries NV 3,400 191,620
Draka Holding NV 7,000 179,406
Elsevier NV 33,000 389,865
IHC Caland NV 15,900 451,646
International Nederlanden Group 6,724 372,012
Koninklijke Boskalis Westminster NV 7,300 101,795
Koninklijke Nedlloyd Groep NV 5,600 190,884
Philips Electronics NV 2,900 122,815
Polygram NV 3,400 200,839
Randstad Holdings NV 14,200 1,004,725
Royal Dutch Petroleum Co. ADR 17,500 2,133,914
Smit Transformatoren NV * 8,800 184,067
Wegener NV 4,000 331,827
Wolters Kluwer NV 10,300 908,980
Total 6,764,395
New Zealand - 0.8%
Carter Holt Harvey Ltd. 127,000 310,782
Telecom Corp. of New Zealand 103,000 385,653
Wrightson Ltd. 387,400 266,802
Total 963,237
Norway - 2.1%
Norsk Hydro AS ADR 20,900 872,575
Olav Thon Eiendomsselskap 10,700 175,267
Schibsted Gruppen AS 19,400 245,410
Sensonor AS * 25,000 178,398
Simard AS 4,600 56,698
System Etikettering AS 10,000 170,289
Unitor Ships Service ADR 46,000 798,376
Veidekke AS 5,000 97,308
Total 2,594,321
Philippines - 0.2%
Philippine Long Distance Telephone Co. - ADR 2,900 208,075
Portugal - 0.3%
Banco Espirito Santo e Comercial de Lisboa 8,100 135,406
Modelo Continente Sociedade Gestora de
Participaceos Sociais SA 1,000 92,339
Modelo Supermer * 1,600 56,646
Somague Sociedade Gestora de Participaceos
Sociais SA 4,250 27,616
Total 312,007
Singapore - 2.4%
Development Bank Of Singapore Ltd. 'A' 81,000 $922,039
Jardine Matheson Holdings Ltd. 34,800 255,780
Keppel Corp. Ltd. 184,000 1,501,716
Singapore Land Ltd. 53,000 347,187
Total 3,026,722
South Africa - 1.9%
Barlow Ltd. 17,000 174,185
De Beers Consolidated Mines Ltd. - ADR 8,800 227,700
Free State Consolidated Gold Mines Ltd. - ADR 26,700 330,411
Safmarine & Rennies Holdings Ltd. 39,500 114,625
SA Iron & Steel Industrial Corp. Ltd. 299,100 339,778
LibLife Strategic Investments Ltd. 251,000 845,770
South African Breweries Ltd. - ADR 9,500 271,068
Vaal Reefs Exploration & Mining Ltd. - ADR 100 619
Total 2,304,156
Spain - 2.3%
Acerinox SA 2,000 245,785
Asturiana de Zinc SA * 15,000 143,183
Azkoyen SA 800 58,777
Banco Central Hispanoamerica (BCH) 4,700 99,632
Banco Intercontinental ESPA 14,300 1,288,180
Centros Co. Merciales Pryca SA 10,900 202,686
Construction y Auxiliar de Ferrocarriles SA 750 30,062
Eurpopistas Concesionaria Espanola SA 892 7,301
Tabacalera SA 5,400 202,165
Telefonica de Espana - New 28,400 366,150
Viscofan Industria Navarra de Envolturas
Celulosicas SA 10,000 147,934
Total 2,791,855
Sweden - 3.2%
Allgon AB 13,000 309,136
Astra AB 30,000 903,080
Autoliv AB * 5,000 267,351
Avesta-Sheffield * 13,500 148,451
Elekta Instrument AB * 7,500 231,956
Ericsson LM 'A' 15,200 302,951
Hennes & Mauritz AB 4,900 286,924
Hoganas AB * 7,000 136,630
Kinnevik AB 4,900 149,524
Marieberg Tidnings AB 5,900 123,270
Munksjo AB 20,000 174,568
OM Gruppen AB 14,500 152,472
Skandinaviska Enskilda Banken AB * 50,900 264,466
SSAB Svenskt Stak AB 14,800 171,902
Terra Mining AB 5,900 107,861
Trelleborg AB * 14,400 168,245
Total 3,898,787
Switzerland - 5.7%
BBC AG (Brown Boveri) 7,500 1,506,522
Fischer (George) AG * 100 134,783
Fust SA Dipl. Ing AG 520 151,478
Keramik Holding AG Laufen Br* 150 108,913
Nestle AG-Sponsored ADR 27,600 1,436,155
Pheonix Meccano AG 300 123,913
Phonak Holdings AG 550 313,739
Rentsch (W) Holding AG * 730 122,513
S.M.H. AG 1,100 148,261
SGS Societe Generale de Surveillance Holding SA 'B' 1,250 402,174
SGS Societe Generale de Surveillance Holding SA 'R' 840 1,460,871
Sika Finanz AG - Bearer 2,510 796,652
Zehnder Holding AG 500 365,217
Total 7,071,191
United Kingdom - 11.7%
Airtours plc 25,000 160,610
Asda Group plc 143,100 216,181
Associated British Foods plc 40,000 422,360
Associated British Ports 42,400 188,790
Barclays plc 38,600 414,633
Bass plc 56,000 535,646
Bemrose Corp. plc 20,000 128,170
Blenheim Group plc 217,000 873,034
Blue Circle Industries plc 98,000 437,129
British Aerospace plc 27,880 251,662
British Airways plc 81,000 530,680
British Gas plc 92,000 423,531
British Sky Broadcasting - ADR * 21,700 566,913
Central European Media Enterprises, Ltd. * 20,000 297,500
Domestic & General Group plc 5,000 102,568
First Leisure Corp. plc 44,700 211,824
First National Finance Corp. plc 148,300 211,061
GKN plc 43,000 438,308
Goode Durrant plc 50,000 191,620
Granada Group plc 21,900 212,434
Great Universal Stores plc 47,000 439,098
Halma plc 45,000 137,394
Hanson plc - ADR 67,000 1,180,872
Hanson Trust plc 45,600 159,527
Invesco MIM 62,400 210,862
Javis Porter Group plc 45,217 200,614
Provident Financial plc 16,000 160,038
Racal Electronics plc 55,000 224,340
Rentokil Group plc 207,000 888,775
RTZ Corp. plc 16,400 213,720
Sears plc 277,000 438,297
Serco Group plc 40,000 194,004
Seton Healthcare Group plc 40,000 231,532
Stagecoach Holdings plc 55,000 191,538
Standard Chartered plc 41,500 220,419
T. Cowie Group plc 52,412 230,870
Taylor Woodrow plc 326,700 597,436
Trafalgar House plc 197,900 175,815
Trinity Holdings plc 40,800 221,891
Unigate plc 85,000 48,106
U.S. Industries, Inc. (spin-off from Hanson plc) 456 6,213
Vendome Luxury Group 22,100 166,227
Vodafone Group plc 56,700 210,533
Welsh Water plc 17,800 188,091
WPP Group plc 109,100 211,655
Total 14,462,521
Total Common Stock (Cost - $97,146,521) 101,024,877
Commingled Investment Vehicles - 4.6%
Emerging Markets Infrastructure Fund, Inc. 24,000 246,000
Emerging World Investors Fund (Lazard) 3,000 2,991,719
PIMCO Blairlogie Emerging Markets Fund 207,554 2,463,665
Total Commingled Investment Vehicles (Cost - $5,672,093) 5,701,384
Preferred Stock - 1.0%
Krones AG (Germany) 2,000 952,312
Fresenius AG (Germany) 400 269,458
Rhoen-Klinikum AG Vorzugsakt (Germany) 60 60,694
Total Preferred Stock (Cost - $1,426,096) 1,282,464
Rights - 0.0% ++
IDIA Stores (France) Expiring 9/29/95 * 22,000 0
Seton Healthcare Group (U.K.) Expiring 7/11/95 * 8,000 5,597
Aalberts Industries (Netherlands)
Expiring 7/12/95 * 3,400 3,622
Total Rights (Cost - $0) 9,219
Warrants - 0.0% ++
Senshukai Co. (Japan) Expiring 7/18/95 * 25 13
R.A.S. Risp SPA-CW 97 (Italy) Expiring 11/30/97 * 5,820 13,693
R.A.S. SPA-CW 97 (Italy) Expiring 12/31/97 * 180 725
Jardine Strategic Holdings (Hong Kong)
Expiring 5/2/98 6,812 0
Total Warrants (Cost - $100,625) 14,431
Face
Bonds - 1.7% Amount (b)
Bangkok Bank Public Co., 3.250%
due 3/3/04 (Thailand) 1,290,000 THB 1,315,800
Spanish Government, 8.200% due 2/28/09 (Spain) 64,000,000 ESP 399,808
Kingdom of Sweden, 9.000% due 4/20/09 (Sweden) 3,300,000 SEK 390,895
Total Bonds (Cost - $2,003,618) 2,106,503
Long Options - 0.4% Contracts
Sept '95 Japanese Yen $126.00 call expiring 9/30/95 100 $87,500
Sept '95 Japanese Yen $126.50 call expiring 9/30/95 100 80,000
Sept '95 Japanese Yen $127.00 call expiring 9/30/95 100 73,750
Sept '95 Nikkei Index 1550 call expiring 9/30/95 30 65,448
Sept '95 Nikkei Index 1600 call expiring 9/30/95 100 129,717
Total Long Options (Cost - $786,686) 436,415
Total Long-Term Investments (Cost - $107,135,639) 110,575,293
Face
Short-Term Investments - 14.3% Amount (b)
Bank of Boston (Ireland) Time Deposit,
6.280% due 7/3/95 398,184 98,184
Bank of Ireland (Cayman) Time Deposit,
6.210% due 7/3/95 2,856,680 2,856,680
Fuji Bank (Cayman) Time Deposit, 6.050%
due 7/3/95 500,000 500,000
Harris Bank Time Deposit, 5.860% due 7/3/95 60,000 60,000
Prudential Securities Repurchase Agreement
5.780% due 7/3/95 Issued 6/30/95
(Collateralized by $148,692,000
FNMA Notes, 10.000% due 3/1/18 with
a market value of $8,267,583; and
$3,515,333 U.S. Treasury Notes,
5.125% due 12/31/98 with a market
value of $3,416,465; and $2,435,946
FNMA Notes, 9.000% due 6/1/22 with
a market value of $266,173) 11,601,694 11,601,694
U.S. Treasury Bill 5.650% due 7/6/95 # (a) 375,000 374,705
U.S. Treasury Bill 5.700% due 7/6/95 # (a) 250,000 249,802
U.S. Treasury Bill 5.470% due 12/14/95 # (a) 650,000 633,605
U.S. Treasury Bill 5.390% due 12/14/95 # (a) 275,000 268,165
U.S. Treasury Bill 5.500% due 12/14/95 # (a) 40,000 38,986
U.S. Treasury Bill 5.530% due 12/14/95 # (a) 700,000 682,150
U.S. Treasury Bill 5.680% due 12/14/95 # (a) 75,000 73,036
Total Short-Term Investments (Cost - $17,737,007) 17,737,007
Total Investments - 103.7% (Cost $124,872,646) 128,312,300
Other Assets and Liabilities - (3.7%)
Other assets 2,149,058
Payable for Money Manager fees -33,466
Payable for securities on loan -3,754,864
Other accrued expenses and liabilities -2,914,414
Other assets and liabilities, net -4,553,686
Net Assets - 100.0% $123,758,616
Applicable to 12,072,304 outstanding $.001 par value shares
(authorized 500,000,000 shares)
Net asset value per share $10.25
Components of Net Assets as of June 30, 1995 were as follows:
Capital stock at par value ($.001) 12,072
Capital stock in excess of par value 121,971,743
Undistributed net investment income 1,156,452
Net realized loss on investments, financial futures
contracts and foreign currency -2,093,055
-related translations
Net unrealized appreciation on investments,
financial futures contracts,
and on assets and liabilities
denominated in foreign currency 2,711,404
Net Assets $123,758,616
* Non-income producing security
+ See Note 2 to the Financial Statements
++ Rounds to less than 0.1%
# Interest rate represents the yield to maturity at the time of purchase.
ADR American Depositary Receipt
ADS American Depositary Share
GDR Global Depositary Receipt
GDS Global Depositary Share
(a) Security pledged to cover margin requirements for financial
futures contracts.
(b) Principal amounts stated in U.S. dollars unless otherwise noted.
See Notes to Financial Statements
EMERGING MARKETS FUND
GRAPH: COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN TIFF EMERGING MARKETS FUND AND THE
MSCI EMERGING MARKETS FREE STOCK INDEX WHERE
THE Y-AXIS RANGES FROM $7,000 TO $12,000 AND THE X-
AXIS RANGES FROM 5/31/94 TO 6/30/95.
Performance Evaluation
Buoyed by a growing appetite for risk among U.S.-based investors, and a
calming of currency markets that proved abnormally turbulent during the
preceding quarter, most emerging markets produced sharply positive returns
during 2Q 1995. In contrast to 3Q 1994, when uninvested cash caused the
Fund to lag the rapidly appreciating MSCI Emerging Markets Free Stock Index
by a painful 8.2%, the Fund participated fully in emerging markets' most
recent rally, outperforming the Index by 0.9% and the average emerging
markets fund tracked by Lipper by more than twice that margin (10.6% vs.
8.6%) during 2Q 1995. While the Fund performed satisfactorily during 2Q
1995, its cumulative return since inception continues to lag the MSCI EMF
Index (as does the average emerging markets fund over the same 13-month
measurement period). The Fund's pronounced biases against Malaysia and
South Africa and toward East Asia are large enough to potentially recoup its
relative losses in a very brief amount of time - or to magnify them if these
biases run counter to market sentiment. TIP's directors are gratified that the
Fund's existing holders have elected to "stay the course," and that the Fund
continues to attract new investors.
Policy Considerations
Investor perceptions of emerging markets did almost a complete about-face
between the fall of 1993 and early 1995: what was once seen as a no-lose
proposition (in late 1993) was seen as a no-win proposition by many investors
as recently as three months ago. Panic selling by investors belatedly
discovering that their time horizons were shorter than they'd earlier supposed
have spawned legitimate opportunities for value investors in emerging markets
- opportunities that persist despite emerging markets' rebound during 2Q
1995. But the very fact that the opportunities being spawned derive more from
shrinking investor time horizons than from improving fundamentals makes the
short-term risks of investing in emerging markets acute. Foundations seeking
to exploit the recent turmoil in such markets should be sure that their time
horizons are indeed long-term. For foundations that have not invested in such
markets previously, the wisest course might be to eschew "pure plays" in favor
of more diversified funds whose managers are permitted but not compelled to
invest in emerging markets (e.g., the TIFF International Equity or Multi-Asset
Funds; these two Funds' normal allocations to emerging markets are 15% and
5%, respectively).
<TABLE>
<S> <C> <C>
Shares Value+
Long-Term Investments - 87.2%
Common Stock - 65.4%
Argentina - 2.2%
Astra Cia Argentina de Petro 70,630 $ 105,966
Banco Galicia y Buenos Aires - Class B 15,209 60,390
Cia De Bebidas y Alimentos 13,464 17,506
Cia Naviera Perez Companc 35,783 150,317
Commercial Del Plata 65,690 162,281
Compania Naviera Perez ADR 13,538 113,754
Dycasa SA * 8,472 18,218
Galicia ADR 2,200 34,650
Inversiones y Representacion GDR * 2,450 58,573
IRSA, Inversiones y Representaciones SA (144A) (a) 35,396 84,611
Molinos Rio de La Plata - Class B * 10,050 57,799
Rigolleau SA-Series B 41,771 22,561
Telefonica de Argentina ADR 4,300 106,425
YPF-Sociedad Anonima ADR 13,200 249,150
Total 1,242,201
Austria - 0.9%
Julius Meinl International * 15,720 487,543
Bangladesh - 0.3%
Beximco Pharmaceuticals Ltd. 7,700 175,189
Brazil - 2.1%
Aracruz Celulose SA ADR 2,667 31,333
Avipal SA-Avicultura e Agropecuaria * 25,240,000 75,720
Bombril SA ADR * 4,400 93,129
Cemig SA Energy ADR 3,321 65,605
Cia Paulista De Forca E Luz * 3,469,600 173,480
Companhia Siderurgica Nac ADR 2,600 58,699
Companhia Vale Do Rio Doce ADR 3,700 142,067
Makro Atacadista SA GDS * 4,100 59,942
Santista Alimentos SA * 33,000 25,080
Telebras SA 800,000 23,200
Telecomunicacoes Brasileiras SA Restricted ADR * 20 934
Telecomunicacoes Brasileiras ADR * 11,200 382,326
Voctorantim Celulose Papel SA GDR 2,700 51,271
Total 1,182,786
Chile - 2.9%
Compania de Telefonos de Chile ADR 3,350 272,605
Enersis SA ADR 6,200 182,900
GT Global Chile Growth Fund 16,900 659,100
Laboratorio Chile SA ADR 4,100 77,388
Madeco SA ADR 5,900 169,625
Quimica y Minera Chile ADR 5,250 248,063
Total 1,609,681
China - 0.4%
Shanghai Haixin Co. Ltd. - Class A 86,200 $41,376
Shanghai Shangling Electric Appliances Co. Ltd. * 50,000 41,500
Shenzhen China Bicycles Co. 87,500 28,271
Yizheng Chemical Fibre Co. - Class A 330,000 115,170
Total 226,317
Colombia - 1.8%
Banco de Bogota 44,623 260,963
Bavaria * 9,607 28,365
Carulla y Compania SA ADR (144A) (a) 2,488 30,514
Cemento Argos SA (144A) (a) * 22,300 197,522
Cementos Paz del Rio ADR * 2,900 54,325
Cia Nac Chocolates 17,800 181,921
Compania Boliviana Energia 1,000 29,750
Computec SA * 38,063 15,130
Industrais Alimenticias Noel 11,640 59,483
Pisos Asfalto y Vinilos Colo 11,000 33,102
Suramericana de Seguros SA 4,370 97,762
Total 988,837
Czech Republic - 0.7%
Cement Hranice AS * 1,065 18,341
Czeske Energeticke Zavody GDR * 1,980 83,160
Deza Valasske Mezirici AS * 2,050 153,512
Fatra Napajedla AS * 1,220 30,878
Zavody Presneho Strojiren ZL * 1,980 88,885
Total 374,776
Ecuador - 0.0% #
La Cemento Nacional Of Ecuador GDR 100 24,000
Ghana - 0.1%
Ashanti Goldfields Ltd. (144A) (a) GDR 2,700 59,738
Greece - 1.2%
A.G. Petzetakis SA 4,500 21,996
Alfa-Beta Vassilopoulos SA 2,900 22,809
Chipita International 3,540 64,023
Credit Bank/ Greece 2,650 147,078
Delta Dairy SA 1,540 32,026
Hellenic Bottling Co. SA 5,920 175,728
Hellenic Technodomiki 2,300 52,635
Michaniki SA 10,770 168,461
Total 684,756
Hong Kong - 4.9%
Champion Technology Holdings 872,321 78,945
Chen Hsong Holdings 190,000 120,935
China Steel Corp. GDR 14,700 300,468
C.P. Pokphand Co. Ltd. 1,588,000 $559,295
Dong Fang Electric Machinery Co. Ltd. - H * 236,000 88,453
Guangdong Investments 366,000 199,873
High Fashion International * 336,000 28,661
HSBC Holdings plc 192 2,463
Kingboard Chemicals Holdings Ltd. 112,000 36,915
KTP Holdings Ltd. 556,991 66,226
Lamex Holdings Ltd. 294,000 39,896
Legend Holdings Ltd. 114,000 16,792
Lung Kee (Bermuda) Holdings Ltd. 264,000 61,406
M.C. Packaging Ltd. 284,000 98,179
Pacific Concord Holdings 276,000 49,238
Qingling Motors Co. (144A) (a) * 272,000 65,035
Semi-Tech (Global) Ltd. 112,000 180,219
Singamas Container Holdings * 362,000 77,649
Sinocan Holdings Ltd. 640,000 181,952
Tian An China Investments * 600,000 93,060
Tomei International (Holdings) Ltd. 1,942,000 150,505
Varitronix International Ltd. 78,000 136,601
World Houseware Holdings Ltd. 457,011 104,564
Total 2,737,330
Hungary - 0.4%
Danubius Hotels * 5,830 73,783
Graboplast * 3,000 34,146
Pannonplast Plastic Industries * 6,070 61,687
Primagaz Hungaria * 1,842 43,429
Soproni Sorgyar Brewery Ltd. * 710 14,838
Zalakeramia * 2,000 39,435
Total 267,318
India - 4.1%
Ashok Leyland Ltd. GDR * 4,030 55,413
Bajaj Auto Ltd. GDR * 5,030 140,236
East India Hotels GDR 2,640 42,240
Grasim Industries Ltd. GDR * 4,200 103,425
Gujarat Narmada Valley GDR * 9,840 90,695
Hindalco Industries Ltd. GDR * 12,180 354,803
India Cements Ltd. 7,600 87,400
India Cements Ltd. GDR (144A) (a) 12,600 144,900
Indian Aluminum Co. Ltd. GDR * 7,800 84,825
Indian Rayon & Industries Ltd. GDR * 9,400 137,522
Jain Irrigation Systems Ltd. * 11,000 48,400
Jardine Fleming India Fund, Inc. * 8,810 102,416
Larsen & Toubro Ltd. * 8,820 173,578
Nelson Trade and Finance Co. Ltd. * 35,575 63,462
Oryx (India) Fund Ltd. GDR * 1,000 11,000
Oryx (India) Fund Units GDR 540 30,375
PT Ultrajaya Milk Industry and Trading Co. 35,250 79,179
Reliance Industries GDR 11,080 202,210
South India Viscose GDR 11,630 43,613
Tata Engineering & Locomotion GDR * 22,160 437,771
Tata Hydro-Electric Power Supply Co. GDR * 274 99,325
Total 2,532,788
Indonesia - 3.8%
PT Bank International Indonesia 64,500 199,209
PT Astra Graphia 138,750 373,987
PT Astra International 136,500 242,218
PT Bakrie and Brothers 42,500 129,829
PT Charoen Pokphand Indo 21,000 45,755
PT Dharmala Sakti Sejah 102,000 57,273
PT Hm Sampoerna Foreign 6,000 47,170
PT Indah Kiat Pulp & Paper 130,000 192,725
PT Indorama Synthetics 36,750 110,202
PT Jakarta International Hotel 74,000 93,085
PT Mulia Industrindo 38,000 83,649
PT Pabrik Kertas Tjiwi Kimia 14,500 29,313
PT Pakuwon Jati 86,500 64,114
PT Petrosea 36,000 48,517
PT United Tractors (FB) 56,000 119,498
PT Semen Gresik 10,000 53,908
Total 1,890,452
Korea - 10.1%
Cheil Foods & Chemicals Inc. * 600 37,589
Daewoo Securities Co. * 6,240 176,122
Hyundai Motor Co. Ltd. 4,700 90,475
Hyundai Motors (144A) (a) GDR 4,200 80,850
Hyundal Engineering & Construction Co. 7,327 341,128
Korea Chemical Co. Ltd. * 580 68,771
Korea Electric Power Corp. 10,900 408,282
Korea Electric Power Corp. ADR 51,500 1,165,188
Korea Fund, Inc. 16,598 325,736
Korea Mobile Telecom Corp * 5,200 185,900
Kwang Ju Bank * 8,811 88,900
Pohang Iron & Steel Co. Ltd. 47,200 1,392,400
Pusan Steel Pipe Corp. * 4,998 170,072
Samsung Electronics Co. * 3,713 597,501
Samsung Fire & Marine Insurance * 110 33,223
Shinhan Bank * 12,853 264,445
Ssangyong Cement Co. Ltd. * 3,490 93,901
Ssangyong Investment & Securities Ltd. * 3,224 54,853
Taegu Department Store Co. * 785 21,432
The Korea Express Co. * 1,094 42,132
Total 5,638,900
Malaysia - 5.2%
Aokam Perdana Berhad 78,000 $193,643
Arab Malaysia Corp. Berhad 14,000 49,980
Arab Malaysian Finance Berhad - Class A * 1,000 3,714
Arab-Malaysian Merchant Bank 3,000 35,700
DCB Holdings Berhard 71,000 208,307
Ekran Berhad 36,000 110,794
Genting Berhad 20,000 197,784
IJM Corp. Berhad 17,000 67,665
Kian Joo Can Factory Berhad 12,000 47,025
Land & General Berhard 64,000 214,032
Leader Universal Holdings Ltd. 73,000 260,610
Malayan Banking Berhad 28,000 221,749
Malaysian Pacific Industries Berhad 39,000 97,624
O.Y.L. Industries Berhad 15,000 107,099
Sime UEP Properties Berhad * 18,000 37,300
Systems Telekom Malaysia * 71,000 538,982
Technology Resources Inds. - Class A * 27,000 77,555
UMW Holdings Berhad 72,000 208,289
United Engineers (Malaysia) 32,000 203,530
Total 2,881,382
Mexico - 6.2%
Cementos de Mexico SA * 15,500 52,286
Cemex, SA de CV 34,000 121,757
Cifra "C" 55,000 72,452
Cifra SA de CV Class B 211,720 291,750
Cifra SA de CV Class A 20,000 27,498
Cydsa SA 53,600 179,094
Desc Sociedad de Fomento Indl 28,000 93,556
Hylsamex GDR 3,100 59,210
Empaques Ponderosas, SA 51,000 132,248
Empressa Ica Sociedad ADR 11,500 117,875
Fomento Economico Mexicano, SA de CV 85,000 199,759
Grumas SA * 30,600 85,417
Grupo Condumex SA de CV 2,500 11,271
Grupo Financieri Banamex 8,000 12,124
Grupo Financiero Banamex 29,000 42,653
Grupo Financiero Bancomer, SA de CV 120,000 34,524
Grupo Financiero Bancrecer - Series ACP* 78,000 18,080
Grupo Financiero Bancrecer 44,683 10,786
Grupo Financiero Banorte * 80,000 102,312
Grupo Herdez SA - Series A * 210,000 65,121
Grupo Industrial Alfas SA * 8,000 97,074
Grupo Industrial Durango-Series A * 14,400 115,200
Grupo Mexico SA - Series B * 59,240 284,122
Grupo Posadas SA ADR 2,300 15,012
Grupo Posadas SA 170,000 55,437
Grupo Sidek SA de CV * 81,887 72,196
Grupo Situr SA de CV * 125,000 58,750
Grupo Televisa SA GDR 4,190 85,371
Hylsamex SA * 15,000 45,804
Hylsamex ADR (144A) (a) * 1,500 27,499
Ingenieros Civiles Asociados * 5,000 51,639
Kimberly-Clark de Mexico, SA de CV 9,400 107,450
Telefonos de Mexico SA ADR 12,960 383,940
Tolmexs SA de CV 64,000 249,650
Vitro SA ADR 7,500 64,688
Total 3,443,605
Pakistan - 0.9%
Adamjee Insurance Co. 3,750 13,679
Bank of Punjab Ltd. * 26,000 19,932
D.G. Khan Cement Co.. Ltd. 36,300 51,263
Dewan Salman Fibre * 18,020 59,333
Engro Chemical Pakistan Ltd. 4,250 21,402
Fauji Fertilizer * 27,400 53,953
Hub Power Co. Ltd. GDR 3,170 46,377
Nishat Textile Mills * 49,450 45,890
Packages Ltd. * 9,900 43,142
Pakistan Fund * 4,000 22,500
Pakistan State Oil Co. Ltd. 9,875 119,537
Pakistan Telecommunications (144A) (a) * 100 10,620
Total 507,628
Peru - 1.5%
Banco de Credito del Peru * 69,810 122,524
Cia de Minas Buenaventuras SA * 39,919 228,156
Compania Nacional de Cerveza 118,595 80,052
Compania Goodyear del Peru * 2,300 6,687
CPT Telefonica de Peru SA 109,890 187,923
El Pacifico-Peruano Suiz * 1,927 60,707
Enrique Ferreyros SA 27,600 38,753
Minsur SA-Trabajo * 3,735 47,150
San Juan Brewery 21,381 40,894
Southern Peru Copper Corp. * 8,255 37,522
Total 850,368
Philippine Islands - 0.8%
Ayala Land, Inc. 61,625 71,319
Engineering Equipment Inc. 281,400 22,062
First Philippine Holdings Corp. 13,440 36,117
Manila Electric Co. 5,800 46,645
Metropolitan Bank & Trust Co. 2,650 57,699
Philex Mining Corp. Class B * 1,006,200 143,987
Philippine Long Distance Telephone Co. 900 64,575
Total 442,404
Poland - 0.9%
Exbud SA * 8,300 70,924
First Polsko Amerykanski Bank 8,745 81,453
Prochnik SA * 2,950 23,948
Swarzedzkie Fabryk Mebli SA * 6,000 55,117
E. Wedel SA * 1,400 81,948
Zaklady Odziezowe BYTOM SA * 2,379 179,911
Total 493,301
Portugal - 1.6%
Banco Comercial Portugues 8,000 105,937
Banco Espiritos Santo e Comercial de Lisboa 5,800 96,957
Cia Industrial Ceramica SA * 2,827 30,938
Cimentos de Portugal SA * 3,120 50,791
Corticeira Amorim, SA * 4,435 66,737
Empresa Fabril de Maquinas 4,600 54,747
Engil Sociedade de Construcao Civil, SA 2,800 44,049
Estabelecimentos Jeronimo Martins & Filho 480 24,460
Fab de Vid Barbosa & Almeida * 1,300 37,782
Investec Consultadoria International * 1,775 33,509
Lusotur Sociedade Financeira de Turismo* 2,300 46,409
Mundicenter-Sociedade Imobiliaria, SA 2,500 59,850
Portugal Telecom SA 2,500 48,068
Soc Metropolitana de Construct * 3,500 32,079
Sonae Industria e Investimento * 6,280 150,384
Total 882,697
Russia - 0.4%
Bakyrchik Gold plc * 30,100 84,722
San Francisco/Moscow Teleport * 9,000 90,000
174,722
Singapore - 0.9%
Chuan Hup Holdings Ltd. 114,000 93,047
GP Batteries International Ltd. 40,000 98,000
IPCO International Ltd. 20,000 65,600
Pacific Carriers Ltd. 47,000 43,743
Santeh Ltd. 126,800 98,955
Singapore Aerospace Ltd. 20,000 26,346
United Overseas Bank Ltd. 3,600 34,021
Venture Manufacturing (Singapore) Ltd. 19,000 50,057
Total 509,769
Slovakia - 0.5%
Chirana Prema * 1,650 59,704
Nafta Gbely AS * 1,730 159,877
Povazske Strojarne 10,100 66,447
286,028
Sri Lanka - 0.4%
Aitken Spence & Co. 16,120 62,257
Dev Fin Corp. of Ceylon 6,533 48,688
Hatton National Bank 3,600 35,771
John Keells Holdings Ltd. * 9,600 36,248
Lanka Walltile 16,500 20,330
Vanik Inc. Ltd. 17,300 12,292
Total 215,586
South Africa - 4.1%
Anglo American Gold Investment Co. Ltd. 1,285 113,107
Anglovaal Ltd. 2,900 99,711
Barlow Ltd. 21,320 218,449
De Beers Centenary AG 12,970 338,922
Driefontein Consolidated Ltd. 4,200 61,807
First National Bank 13,300 85,057
General Mining Union Corp. 33,790 116,180
Iron & Steel Industrial Corp. Ltd. 75,700 85,995
Malbak Ltd. 10,000 63,265
Murray & Roberts Holdings Ltd. 38,820 224,241
Nedcor Ltd. GDR 2,600 129,038
Pepkor Ltd. 13,650 91,050
Rembrandt Group Ltd. 13,760 94,622
Sasol Ltd. 14,400 138,038
Smith Ltd. (C.G.) 24,870 138,528
South African Breweries Ltd. 6,255 178,505
Wooltru Ltd. 15,500 92,732
Total 2,269,247
Taiwan - 1.1%
GVC Corp. GDR 10,400 165,776
Hocheng Group Corp. GDR 6,600 80,850
ROC Taiwan Fund 30,500 335,500
Total 582,126
Thailand - 3.6%
Advanced Info Service PLC 6,600 97,362
Alucon Manufacturing Co. Ltd. 15,000 68,693
Bangkok Bank Co. Ltd. 24,200 266,764
Bank of Asia 46,200 131,065
Bank of Ayudhya Ltd. 11,000 53,941
Chareon Pokphand Feed 5,000 29,787
First Pacific Land, Ltd. * 118,658 74,541
Hana Microelectronics Co., Ltd 16,300 81,252
Industrial Finance Corp. of Thailand 133,134 350,700
MDX Co. Ltd. 57,300 131,206
Precious Shipping Ltd. * 3,700 41,686
Property Perfect Co., Ltd. 124 1,196
Raimon Land Co. Ltd. 10,000 24,924
Ramkamhaeng Hospital Co. Ltd. 29,800 52,534
Saha-Union Corp. Ltd. 76,800 112,051
Siam Cement Co. Ltd. 1,000 63,870
Siam City Bank Ltd. 57,700 79,505
Siam Syntech Construction Public Co. Ltd. 36,300 80,176
TelecomAsia Corp. * 23,300 86,401
Thai Farmers Bank, Ltd. 14,518 135,855
Thai-German Ceramic Industries Co. 16,000 53,819
Total 2,020,328
Turkey - 0.6%
Akbank T.A.S. 466,500 118,771
Aktif Finans Factoring Hizmetleri A.S. 227,000 29,283
Alarko Holding A.S. 114,000 100,639
Ege Biracilik Ve Malt Sanayii SA * 22,000 25,894
Migros Turk T.A.S. * 37,000 41,455
Total 316,042
Venezuela - 0.6%
Corimon C.A. SAC.A. ADR * 11,770 76,505
Mavesa, SA (144A) (a) ADR 31,627 86,974
Siderurgica Venezolana Sivens ADR 111,800 186,013
Total 349,492
Zimbabwe - 0.2%
Delta Corp. Ltd. * 70,800 107,807
Total Common Stock (Cost $38,870,979) 36,455,144
Commingled Investment Vehicles - 12.6%
BEA Emerging Markets Equity Portfolio 229,153 4,026,218
Emerging World Investors (Lazard) Limited
Partnership 3,000 2,991,719
Total Commingled Investment Vehicles
(Cost $7,050,245) 7,017,937
Preferred Stock - 5.3%
Aracruz Celulose SA (Brazil) 90,751 212,829
Banco Bradesco SA (Brazil) 25,865,000 217,266
Banco Itau SA (Brazil) 759,570 230,909
Bombril P.N. (Brazil) 1,300,000 27,560
Brahma P.N. (Brazil) 288,562 94,591
Celg Class B (Brazil) 357,000 15,494
Cia Energetica de Minas (Brazil) 2,883,000 56,795
Cosigua-Siderur Guanabara (Brazil) 9,579,650 118,788
Delta Dairy SA (Greece) 4,400 84,563
Dixie Lalekla SA (Brazil) 99,000 78,467
Electrobras (Brazil) 1,479,080 406,303
IAP SA (Brazil) 1,215,000 18,590
Industrias Bebidas Antarctica da Paraisa (Brazil) 189,000 25,855
Infustrias de Papel Simao SA (Brazil) 578,051 21,908
Intracom SA (Greece) 100 2,342
Iochpe Maxion S A (Brazil) 60,000 22,734
Iven SA (Brazil) 251,000 104,316
Mangels Industrial SA (Brazil) 6,000,000 21,600
Marcopolo SA (Brazil) 448,000 74,413
Melpaper SA (Brazil) 285,000 77,349
Michaniki SA (Greece) 10,670 135,841
Multibras SA (Brazil) 31,000 25,612
Nakata SA (Brazil) 150,000 49,020
Pettenati SA-Industrial Textile (Brazil) 400,000 13,880
Pranapanema SAMineracao Ind (Brazil) 11,907,000 217,898
Sadia Concordia (Brazil) 40,000 37,132
Telebras Brasileiras (Brazil) 4,681,713 159,646
Telecomunicacoes de Sao Paulo (Brazil) 120,000 14,916
Usiminas (Brazil) 189,195,800 208,115
Vale Do Rio Doce (Brazil) 1,215,640 186,722
Total Preferred Stock (Cost $2,954,047) 2,961,454
Rights - 0.1%
Berjaya Group Berhad (Malaysia) Expiring 7/13/95 95,000 17,917
Bradesco 4 (Brazil) Expiring 7/13/95 359,444 0
Korea Fund Inc Rights (Korea) Expiring 10/17/95 3 3
Migros (Turkey) Expiring 7/27/95 18,500 6,297
Nishat Mills (Pakistan) Expiring 7/5/95 7,417 0
Sarkuysan Elektrolitik Bakir (Turkey)
Expiring 7/26/95 122,000 29,685
Total Rights (Cost $17,917) 53,902
Warrants - 0.0% #
Kian Joo Can Factory (Malaysia) Expiring 5/22/99 4,200 6,308
South India Viscose (India) Expiring 7/24/95 6,140 1,105
Total Warrants (Cost $15,012) 7,413
Face
Convertible Bonds - 3.8% Amount (b)
Acer Inc 4.000% due 6/10/01 (Taiwan) 120,000 358,200
Arab Malaysia Corp 5.000% due 8/4/97 (Malaysia) 21,000 31,366
Arab Malaysia Corp 7.500% due 11/20/99 (Malaysia) 39,333 21,628
Essar Gujarat Ltd. 5.500% due 8/5/98 (India) 150,000 164,344
Gujarat Ambuja Cement 3.500% due 6/30/99 (India) 260,000 350,350
Nan Ya Plastics 1.750% due 7/19/01 (Taiwan) 242,000 232,621
Pacific Concord 4.750% due 12/10/98 (Hong Kong) 40,000 31,800
Pacific Construction Co. Cvt. 2.125% due
10/1/98 (Taiwan) 150,000 151,500
Ssangyong Oil Refining 3.750% due 12/31/08 (Korea) 65,000 70,038
Tata Iron & Steel (Tisco) 2.250% due 4/1/99 (India) 63,000 58,511
Teco Elec & Mach 144(A) 2.750% due 4/1/04
(Taiwan) (a) 170,000 158,699
U-Ming Marine1.500% due 2/7/01 (Taiwan) 227,000 233,243
United Micro Elect 1.250% due 6/8/04 (Taiwan) 208,000 275,600
Total Bonds (Cost $1,915,311) 2,137,900
Total Long-Term Investments (Cost $50,823,511) 48,633,750
Short-Term Investments - 7.0%
Bank of Ireland (Cayman) Time Deposit,
6.210% due 7/3/95 1,675,750 1,675,750
Prudential Securities Repurchase Agreement,
5.780% due 7/3/95; Issued 6/30/95
(Collateralized by $979,746 FNMA Strip
Tranche, 6.500% due 3/01/09 with a market
value of $922,416) 895,516 895,516
U.S. Treasury Bill 5.560% due 12/14/1995 ++ 1,350,000 1,316,728
Total Short-Term Investments (Cost $3,880,336) 3,887,994
Total Investments - 94.2% (Cost $54,703,847) $ 52,521,744
Other Assets and Liabilities - 5.8%
Cash 4,741,433
Other assets 623,436
Payable for loaned securities -1,675,750
Other accrued expenses and liabilities -460,689
Other assets and liabilities, net 3,228,430
Net Assets - 100.0%
Applicable to 6,375,448 outstanding $.001 par value shares
(authorized 500,000,000 shares) $ 55,750,174
Net asset value per share $ 8.74
Components of Net Assets as of June 30, 1995 were as follows:
Capital stock at par value ($.001) $6,375
Capital stock in excess of par value 64,515,667
Undistributed net investment income 74,918
Net realized loss on investments, financial futures contracts,
and foreign currency-related transactions -6,654,838
Net unrealized depreciation on investments, and translation
of assets and liabilities denominated in foreign
currencies -2,191,948
Net Assets $ 55,750,174
<FN>
* Non-income producing securities
# Rounds to less than 0.0%
+ See Note 2 to the Financial Statements
++ Interest rate represents the yield to maturity at the time of purchase.
ADR American Depositary Receipt
ADS American Depositary Share
GDR Global Depositary Receipt
GDS Global Depositary Share
(a) Security exempt from registration under Rule 144(a) of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At
June 30, 1995, these securities were valued at $788,263 or 1.4% of
net assets.
(b) Face amount shown in U.S. dollars unless otherwise noted.
See Notes to Financial Statements
</FN>
</TABLE>
TIFF U.S. EQUITY FUND
GRAPH: COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN TIFF U.S. EQUITY FUND AND THE
WILSHIRE 5000 STOCK INDEX WHERE THE Y-AXIS RANGES
FROM $9,000 TO $13,000 AND THE X-AXIS RANGES FROM
5/31/94 TO 6/30/95.
Performance Evaluation
The good news is that, despite cash inflows exceeding 20% of its March 31
asset base, the Fund kept pace with the rapidly rising Wilshire 5000 Stock
Index during 2Q 1995, thus maintaining a comfortable margin over the Index
since inception net of fees (22.7% vs. 21.4%). The average diversified U.S.
stock fund tracked by Lipper has performed materially worse over the same
time period, lagging the Wilshire 5000 by 350 basis points and the narrower
S&P 500 Index by a whopping 510 basis points. Active managers tend to lag
capitalization-weighted stock indices during periods when large stocks are
outperforming smaller issues, as they have since mid-1994. It is pleasing that
the Fund's distinctive structure has enabled it to outperform the Wilshire 5000
- and stay nip and tuck with the S&P 500 - during a period when most
actively-managed portfolios have materially underperformed these indices. The
Fund's structure is distinctive not because it entails broad diversification
across all market sectors- most multi-manager structures do this - but because
it does so by combining active strategies with a low cost "completeness"
portfolio managed by Martingale Asset Management.
Policy Considerations
The Fund is designed as a core investment vehicle for that portion of an
organization's assets committed to U.S. stocks. Accordingly, it employs a
diverse combination of managers and strategies that, collectively, provide
exposure to all major market sectors (growth, value, large cap, small cap,
etc.). The Fund's structure reflects the belief that, even with expert advice,
most governing boards are ill-equipped to play and win the difficult game of
manager style rotation. Indeed, although TIP's governing board comprises
primarily full-time investment professionals, it prefers to delegate primary
responsibility for making whatever "style" tilts the Fund might display to
outside managers.
TIFF U.S. EQUITY FUND - STATEMENT OF NET ASSETS
June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
Shares Value+
Long Portfolio - 106.0%
Common Stocks - 82.8%
Aerospace - 0.5%
Allied Signal, Inc. 1,320 $ 58,740
Litton Industries, Inc. 2,700 99,563
Northrop Grumman Corp. 2,200 114,674
Rockwell International Corp. 3,600 164,700
Total 437,677
Agriculture - 4.0%
Archer Daniels Midland Co. 9,450 176,006
Campbell Soup Co. 2,800 137,200
Conagra, Inc. 2,700 94,163
Eskimo Pie Corp. 15,000 247,500
Hormel Foods Corp. 600 15,675
IBP, Inc. 15,900 691,650
International Multifoods Corp. 1,500 33,750
McCormick & Co., Inc. 1,130 24,295
Opta Food Ingredients, Inc. (a) * 21,000 283,500
Philip Morris Companies, Inc. 16,900 1,256,938
Revco D.S., Inc. * 2,300 55,200
Sara Lee Corp. 5,300 151,050
Smithfield Foods, Inc. * 1,000 21,313
Tyson Food Inc. - Class A 7,200 166,500
Universal Foods Corp. 1,100 35,610
Total 3,390,350
Airlines - 1.0%
Airborne Freight Corp. 11,000 222,750
Federal Express Corp. 390 23,691
Harper Group, Inc. 25,000 418,750
Total 665,191
Aluminum - 0.4%
Aluminum Co. of America 3,100 155,388
Reynolds Metals Co. 3,100 160,425
315,813
Apparel - 0.0% ++
Triarc Companies, Inc. 2,600 40,625
Banks - 3.7%
Bank of New York 2,500 100,938
BankAmerica Corp. 2,640 138,930
Bankers Trust New York Corp. 1,700 105,400
Chase Manhattan Corp. (The) 4,400 206,800
Chemical Banking Corp. 3,860 182,382
Comerica, Inc. 12,000 385,500
First Bank System, Inc. 800 32,800
First Interstate Bancorp. 4,960 398,040
J P Morgan & Co., Inc. 640 44,880
Key Corp. (New) 10,700 335,713
Mellon Bank Corp. 6,700 278,888
Mercantile Bank Corp. 1,000 44,875
National City Corp. 1,100 32,313
NationsBank Corp. 2,100 112,613
NBD Bancorp., Inc. 2,300 73,600
Premier Bancorp. * 30,800 554,400
Republic New York Corp. 1,200 67,200
Suntrust Banks Inc. 1,100 64,075
TCF Financial Corp. 600 28,500
Total 3,187,847
Beverages - 1.0%
Coca-Cola Co. 9,100 580,125
Coca Cola Enterprises, Inc. 12,000 262,500
Whitman Corp. 1,300 25,188
Total 867,813
Business Machines - 0.8%
Bay Networks Inc. 820 33,927
Cabletron Systems Inc. * 2,700 143,775
Digital Equipment Corp. * 3,800 154,850
EMC Corp., Mass. * 7,800 189,150
Gateway 2000 Inc. 2,200 50,050
Hewlett-Packard Inc. 680 50,660
International Business Machines Corp. 490 47,040
Total 669,452
Chemical - 6.3%
ARCO Chemical Co. 4,100 186,037
Avery Dennison Corp. 2,200 88,000
Cabot Corp. 9,600 506,400
Cytec Industries, Inc. * 2,000 81,750
Dexter Corp. 5,100 120,487
Dow Chemical Co. 6,280 451,375
E I Dupont De Nemours & Co, Inc. 11,460 787,875
Eastman Chemical Co. 3,000 178,500
Ecoscience Corp. (a) 61,500 88,406
EnSys Environmental Products, Inc. (a) 270,000 877,500
First Mississippi Corp. 3,600 122,851
Gencorp, Inc. 14,500 155,875
Geon Co. (The) 1,000 28,750
Great Lakes Chemical Corp. 600 36,150
Lyondell Petrochemical Co. 4,900 125,562
Monsanto Co. 2,600 234,325
Olin Corp. 1,900 97,850
Redman Industries, Inc. 1,000 21,750
Rogers Corp. * 9,000 498,375
Rohm & Haas Co. 900 49,388
Sealed Air Corp. 1,600 70,400
Sterling Chemicals Inc. * 5,200 $60,450
Terra Industries Inc. 5,200 63,050
Union Carbide Corp. 5,500 183,562
Wellman Inc. 8,500 232,687
Witco Corp. 2,600 83,850
Total 5,431,205
Construction - 0.1%
Department 56, Inc. 2,100 80,325
Granite Construction, Inc. 1,000 22,250
Total 102,575
Container - 0.2%
Ball Corp. 810 28,249
Temple Inland, Inc. 2,400 114,300
Total 142,549
Cosmetics - 1.3%
Alberto Culver Co. Class B 5,700 172,425
Avon Products, Inc. 2,500 167,500
Helene Curtis Industries, Inc. 3,600 102,600
Johnson & Johnson 1,310 88,587
Procter & Gamble Co. 7,540 541,938
Total 1,073,050
Drugs - 3.2%
A.L. Pharma Inc. - Class A 1,000 18,750
Abbott Laboratories 500 20,250
American Home Products Corp. 3,120 241,410
Amgen, Inc. 400 32,175
Bergen Brunswig Corp. 2,800 64,050
Bristol-Myers Squibb Co. 5,200 354,250
Cardinal Health, Inc. 1,300 61,425
Eli Lilly & Co. 540 42,390
Forest Laboratories, Inc. * 2,700 119,812
Gensia Pharmaceuticals, Inc. * 1,000 3,750
Gulf South Medical Supply, Inc. 2,000 48,000
Med-Chem Products, Inc. 50,000 431,250
Merck & Co., Inc. 7,500 367,500
Mylan Labs, Inc. 9,100 279,825
Owens & Minor, Inc. 3,400 42,500
Pfizer, Inc. 2,900 267,888
Procyte Corp. * 2,100 4,725
Rhone-Poulenc Rorer, Inc. 3,800 155,325
Roberts Pharmaceutical Corp. 820 18,040
Schering-Plough Corp. 2,900 127,963
Total 2,701,278
Durables - 0.2%
Lear Seating Corp. * 900 20,588
Maytag Co. 6,900 110,400
Toro Co. 2,000 $56,000
Total 186,988
Electrical Utilities - 2.0%
California Energy Co., Inc. * 23,900 391,362
Cinergy Corp. 1,520 39,900
Consolidated Edison Co. of New York 4,600 135,700
DPL, Inc. 1,150 25,444
Entergy Corp. 5,290 127,621
FPL Group Inc. 1,030 39,784
General Public Utilities Corp. 900 26,775
Long Island Lighting Co. 3,900 60,450
Niagara Mohawk Power Corp. 19,000 280,250
Northeast Utilities 6,800 153,000
Pacific Gas & Electric Co. 11,300 327,700
Southern Co. 3,200 71,600
Unicom Corp. 950 25,294
Total 1,704,880
Electronics - 5.5%
Advanced Micro Devices, Inc. 4,200 152,775
Amphenol Corp. - Class A 1,200 34,950
Applied Digital Access, Inc. 2,000 26,000
Arrow Electronics, Inc. * 6,100 303,475
Augat Inc. 1,800 36,900
Avnet Inc. 4,500 217,688
Bio-Rad Laboratories Inc. - Class A 300 10,800
Brooktree Corp. 1,100 18,975
Checkpoint Systems, Inc. * 22,500 500,625
Cyrix Corp. 2,000 48,250
Emerson Electric Co. 2,820 201,630
General Instrument Corp. * 12,600 483,525
Honeywell, Inc. 3,300 142,313
IEC Electronics Corp. 700 4,988
Intel Corp. 9,420 596,404
Kent Electronics Corp. 1,000 37,875
Linear Technology Corp. 300 19,800
LSI Logic Corp. * 2,600 101,725
Marshall Industries 900 30,150
Micron Technology, Inc. 9,100 499,362
Motorola, Inc. 3,700 248,363
Read-Rite Corp. 1,000 26,750
SCI Systems, Inc. 4,900 122,500
Scientific Atlanta Inc. 3,100 68,200
Sensormatic Electronics Corp. 2,000 71,000
Solectron Corp. 2,400 81,900
Stratacom, Inc. 1,000 48,750
Tellabs, Inc. * 2,000 96,250
Texas Industries, Inc. 2,800 279,850
Thermo Instrument Systems, Inc. 1,300 31,850
Three-Five Systems, Inc. 1,000 34,375
Wyle Electronics 4,800 $135,000
Total 4,712,998
Financial - 2.7%
American Express Co. 2,050 72,006
AT&T Capital Corp. 1,000 26,750
Bear Stearns Cos., Inc. 20,400 436,050
Dean Witter Discover & Co. 2,500 117,500
Finova Group, Inc. 600 21,000
First USA, Inc. 5,540 245,838
Household International, Inc. 970 48,015
Inacom Corp. * 1,000 12,875
Lehman Brothers Holding Inc. 7,900 172,812
MBNA Corp. 1,900 64,125
San Juan Basin Royalty Trust (a) 130,300 781,800
Travelers Group, Inc. * 7,000 306,250
Total 2,305,021
Gas Utilities - 0.0% ++
Oneok, Inc. 1,000 21,375
Healthcare/Non-Drugs - 2.8%
Amsco International, Inc. * 1,000 13,875
Baxter International, Inc. 4,400 160,050
Collagen Corp. 2,200 37,675
Columbia/HCA Healthcare Corp. 8,000 346,000
FHP International Corp. * 9,300 213,900
Health Care & Retirement, Inc. 1,000 29,250
Health Management Associates, Inc. - Class A 1,400 40,950
Horizon Healthcare Corp. 1,000 17,875
Integrated Health Services, Inc. 1,000 30,000
Living Centers of America, Inc. 1,000 27,125
Mariner Health Group, Inc. * 1,000 11,250
Maxicare Health Plans, Inc. 1,000 15,500
Mid Atlantic Medical Services, Inc. 1,000 18,500
Pharmchem Laboratories (a) 126,000 614,250
Sun Healthcare Group, Inc. 1,800 28,350
Sybron Corp. 1,000 39,875
United Healthcare Corp. 1,900 78,612
Universal Health Services - Class B 21,000 609,000
Vencor, Inc. * 1,500 47,250
Ventritex, Inc. 1,000 16,875
Vivra, Inc. 1,000 27,125
Total 2,423,287
Hotels/Restaurants - 0.4%
Brinker International, Inc. 1,700 29,325
Morrison Restaurants, Inc. 600 14,400
Sbarro, Inc. 3,200 74,400
Starbucks Corp. * 1,000 $35,625
Wendys International, Inc. 9,400 168,024
Total 321,774
Leisure - 0.3%
Brunswick Corp. 1,700 28,900
Cobra Golf, Inc. * 1,900 60,088
Grand Casinos, Inc. 2,000 70,750
Outboard Marine Corp. 2,800 54,950
WMS Industries, Inc. 1,200 23,550
Total 238,238
Life Insurance - 1.0%
American General Corp. 1,000 33,750
Equitable Companies, Inc. 6,500 135,688
First Colony Corp. 1,100 26,400
Jefferson Pilot Corp. 1,310 71,723
Lincoln National Corp. 3,200 140,000
Providian Corp. 1,000 36,250
Reliastar Financial Corp. 3,500 133,875
Sunamerica, Inc. 4,100 209,100
Transamerica Corp. 500 29,125
Washington National Corp. 800 16,500
Total 832,411
Liquor - 0.1%
Anheuser Busch, Inc. 1,730 98,394
Media - 0.6%
Allen Group, Inc. 2,000 59,250
Chris-Craft Industries, Inc. 1,030 36,050
Disney (Walt) Company 1,090 60,631
Handleman Co. 7,400 71,225
Media General, Inc. - Class A 800 24,400
Viacom, Inc. - Class B * 5,300 245,788
Total 497,344
Metals - 0.7%
Asarco, Inc. 3,000 91,500
Commercial Metals Co. 1,000 27,000
Cyprus Amax Minerals Co. 4,900 139,650
Phelps Dodge Corp. 5,500 324,500
Total 582,650
Motor Vehicles - 1.9%
Borg-Warner Automotive, Inc. 1,600 45,600
Breed Technologies, Inc. 2,200 45,925
Chrysler Corp. 6,430 307,837
Echlin, Inc. 3,700 128,575
Ford Motor Co. 14,000 416,500
General Motors Corp. 9,690 454,219
General Motors Corp. - Class H 1,700 $67,150
Harley-Davidson, Inc. 1,900 46,313
Varlen Corp. 1,100 25,850
Wabash National Corp. 2,700 84,038
Winnebago Industries, Inc. 700 6,125
Total 1,628,132
Mortgage - 0.7%
Countrywide Credit Industries, Inc. 5,100 107,100
Federal Home Loan Mortgage Corp. 440 30,250
Federal National Mortgage Association 3,500 330,313
Greentree Financial Corp. 1,400 62,125
North American Mortgage Co. 2,800 64,750
Total 594,538
Oil/Gas Exploration - 0.0 #
Apache Corp. 1,380 37,777
Oil/Gas (Domestic) - 1.2%
Atlantic Richfield Co. 2,200 241,450
Kerr - Mcgee Corp. 2,700 144,788
Murphy Oil Corp. 1,000 41,000
Phillips Petroleum Co. 6,500 216,938
Santa Fe Pacific Pipeline Partners, L.P. 4,600 167,325
Unocal Corp. 1,360 37,570
USX - Marathon Group 4,910 96,973
Vastar Resources, Inc. 2,000 61,750
Total 1,007,794
Oil/Gas (International) - 2.8%
Amerada Hess Corp. 1,900 92,862
Amoco Corp. 3,200 213,200
Chevron Corp. 4,130 192,562
Exxon Corp. 13,570 958,380
Helmerich & Payne, Inc. 2,100 61,950
Mobil Corp. 3,990 383,040
Texaco, Inc. 6,600 433,125
Ultramar Corp. 1,100 27,775
Total 2,362,894
Oil Services - 0.2%
Camco International, Inc. 1,900 44,413
Western Atlas, Inc. 3,500 155,312
Total 199,725
Other Insurance - 4.3%
Aflac Corp. 12,450 544,688
Allstate Corp. 11,500 340,688
American Bankers Insurance Group, Inc. 1,400 44,450
American Financial Group, Inc. 3,600 269,600
American International Group, Inc. 360 41,040
AON Corp. 7,200 268,200
Capital Guaranty Corp. 1,000 18,000
Cigna Corp. 2,600 201,825
CNA Financial Corp. * 500 43,188
Emphesys Financial Group 2,000 47,250
Fremont General Corp. 2,400 57,901
Frontier Insurance Group, Inc. 2,700 72,563
Hartford Steam Boiler Inspection & Insurance Co. 2,275 100,953
I T T Corp. 2,400 282,000
Loews Corp. 1,500 181,500
Ohio Casualty Corp. 8,000 252,000
Old Republic International Corp. 1,700 44,413
Orion Capital Corp. 6,200 241,800
Paul Revere Corp. (The) 1,000 17,000
Progressive Corp. 1,700 65,238
Safeco Corp. 5,000 287,188
Selective Insurance Group 2,900 95,700
St. Paul Cos., Inc. 3,600 177,300
Vesta Insurance Group, Inc. 1,000 34,375
Total 3,728,860
Paper - 1.2%
Boise Cascade Corp. 600 24,300
Chesapeake Corp. 6,800 211,650
Federal Paper Board Inc. 5,300 187,487
Georgia Pacific Corp. 480 41,640
Glatfelter (P.H.) Co. 3,300 66,413
International Paper Co. 2,900 248,675
Union Camp Corp. 2,500 144,688
Westvaco Corp. 1,000 44,250
Willamette Industries, Inc. 1,500 83,250
Total 1,052,353
Photo - 0.0% ++
Polaroid Corp. 1,100 44,825
Producer Goods - 8.4%
American Brands Inc. 1,000 39,750
American Power Conversion Corp. * 1,200 27,450
Applied Materials Inc. 1,300 112,612
Briggs & Stratton Corp. 3,500 120,750
Case Corp. 6,800 202,300
Cidco, Inc. 3,300 103,538
Cummins Engine, Inc. 6,200 270,476
Deere & Co. 3,700 316,813
Detroit Diesel Corp. 1,000 21,125
Eaton Corp. 4,010 233,081
Esterline Corp. 1,000 22,625
Exide Corp. 1,500 64,500
Flow International Corp. * 32,900 326,944
Foster Wheeler Corp. 1,400 49,350
General Electric Co. 8,510 $479,751
Harsco Corp. 400 21,100
Hubbell, Inc. - Class B 1,100 62,150
Indresco, Inc. 2,300 35,650
Ionics, Inc. 1,300 45,175
Itel Corp. 1,000 39,000
Johnson Controls, Inc. 2,400 135,600
Kennametal, Inc. 4,700 165,675
Minnesota Mining & Manufacturing Co. 4,100 234,725
National Service Industries, Inc. 1,500 43,312
Octel Communications Corp. (a) 38,000 1,111,500
Parker-Hannifin Corp. 4,050 146,812
Picture Tel Corp. (a) * 4,300 206,938
Quanex Corp. 10,700 264,825
Raychem Corp. 1,300 49,888
Scotsman Industries, Inc. 22,100 408,850
Stanley Works 7,500 284,062
Symmetricom, Inc. 200 4,350
TRW, Inc. 2,400 191,700
Textron, Inc. 6,900 401,062
Timken Co. 7,900 364,388
Trinity Industries, Inc. 1,100 36,575
Tyco Lab 2,810 151,740
U.S. Robotics Corp. 1,000 109,000
Varity Corp. 5,100 224,400
York International Corp. 1,200 54,000
Total 7,183,542
Publishing - 1.0%
Franklin Quest Co. 2,200 52,800
National Education Corp. * 96,400 530,200
Steck Vaughn Publishing Corp. * 37,000 323,750
Total 906,750
Railroad - 1.4%
Burlington Northern, Inc. 1,400 88,725
Conrail, Inc. 3,400 189,125
CSX Corp. 1,700 127,713
Gatx Corp. 5,600 263,900
Illinois Central Corp. 1,700 58,650
Norfolk Southern Corp. 2,800 188,650
Southern Pacific Rail Corp. 4,700 74,025
Union Pacific Corp. 3,800 210,425
Total 1,201,213
Retail (Foods) - 0.3%
Albertson's, Inc. 1,290 38,378
Fleming Cos., Inc. 4,100 108,650
Safeway, Inc. * 750 28,031
Sysco Corp. 3,500 103,250
Total 278,309
Retail (Other) - 3.1%
Autozone, Inc. 3,500 87,937
Barnes & Noble, Inc. 1,800 61,200
Best Buy Co., Inc. * 2,700 71,888
CML Group, Inc. 2,300 18,113
CompUSA, Inc. 1,000 33,250
Consolidated Stores Corp. * 18,000 375,750
Designs, Inc. 1,000 8,875
Home Depot 9,400 381,875
J.C. Penney Company, Inc. 2,300 110,400
Mac Frugals Bargains Close-Outs, Inc. * 32,700 572,250
Michaels Stores, Inc. 1,000 21,250
Office Depot, Inc. * 1,630 45,843
Ross Stores, Inc. 6,300 74,025
Sears, Roebuck and Co. 11,600 694,550
Shopko Stores, Inc. 1,000 10,750
Talbots, Inc. 1,000 39,750
Waban, Inc. 2,600 38,675
Total 2,646,381
Services - 8.4%
Automated Security Holdings p.l.c. 75,517 113,276
BMC Software, Inc. 1,100 84,975
Catalina Marketing Corp. 1,000 53,625
Ceridian Corp. 1,000 36,875
Cheyenne Software, Inc. 1,000 18,500
Comdisco Inc. 3,000 91,125
Computer Language Reasearch, Inc. (a) 80,500 754,688
Computer Task Group, Inc. (a) 75,000 1,050,000
CUC International, Inc. 4,400 184,800
Failure Group Inc. (a) * 154,200 828,825
First Financial Management Corp. 430 36,765
Hilb, Rogal & Hamilton Co. 36,500 456,250
Informix Corp. 2,400 60,900
Intuit, Inc. 1,600 121,600
ITT Educational Services Inc. 20,200 343,400
Kelly Services, Inc. 6,800 175,100
Kinder Care Learning Centers, Inc. * 35,800 483,300
Microsoft Corp. * 3,435 310,437
Netmanage, Inc. * 2,000 34,000
Oracle Corp. * 4,355 168,212
Parametrics Technology Corp. 2,200 109,450
PHH Corp. 2,100 93,450
Pittston Services Group 16,100 386,400
Primark Corp. 1,200 21,750
Ryder System, Inc. 7,700 183,837
Service Corp. International 1,360 43,010
Softkey International, Inc. 1,000 31,875
Software Publishing Corp. (a) * 201,000 703,500
Sybase, Inc. 1,200 35,250
Volt Info Sciences, Inc. * 5,000 152,500
Xtra Corp. 500 $23,125
Total 7,190,800
Soaps/Housewares - 0.9%
Clorox Co. 1,200 78,300
Duracell International, Inc. 2,900 125,425
Gillette Co. 1,640 73,185
Lancaster Colony Corp. 7,100 253,825
Newell, Co. 900 22,050
Stanhome, Inc. 7,300 240,900
Total 793,685
Steel - 0.9%
AK Steel Holding Corp. 6,400 174,400
Allegheny Ludlum Corp. 5,900 116,525
Bethlehem Steel Corp. 2,180 35,425
Birmingham Steel Corp. 1,400 25,900
Carpenter Technology Corp. 1,000 68,125
Huntco Inc. - Class A 900 14,625
J & L Specialty Steel, Inc. 2,700 51,975
Lukens, Inc. 2,100 67,725
Nucor Corp. 2,600 139,100
Titan Wheel International, Inc. 1,100 28,325
WHX Corp. 2,600 30,550
Worthington Industries, Inc. 2,500 51,094
Total 803,769
Telephone - 2.8%
Airtouch Communications, Inc. * 5,700 162,450
Alltel Corp. 780 19,793
Ameritech Corp. 600 26,400
AT&T Corp. 7,610 404,281
Bell Atlantic Corp. 900 50,400
Bellsouth Corp. 2,530 160,654
Cellular Communications - Class A 1,300 59,150
Century Telephone Enterprises 3,300 93,638
Cincinnati Bell Inc. 6,200 156,550
Citizens Utilities - Class A 1,648 19,574
GTE Corp. 8,150 278,118
Nynex Corp. 900 36,225
Pacific Telesis Group, Inc. 16,200 433,350
Sprint Corp. 3,300 110,963
Telephone & Data System, Inc. 5,400 196,425
United States Cellular Corp. 1,000 30,250
U.S. West, Inc. 940 39,128
Worldcom, Inc. 3,500 94,500
Total 2,371,849
Thrifts - 2.4%
Ahmanson (H.F.) & Co. 2,600 57,200
Albank Financial Corp. 600 15,675
American Federal Bank, FSB 22,000 302,500
Amfed Financial Inc. 1,000 24,000
Astoria Financial Corp. * 1,400 50,050
FirstFed Michigan Corp. 20,000 560,000
JSB Financial, Inc. 1,000 28,875
Leadership Financial Corp. 900 25,537
Peoples Bank of Bridgeport, Connecticut 28,000 462,000
Roosevelt Financial Group, Inc. 30,000 500,625
T.R. Financial Corp. 1,000 17,875
Washington Mutual, Inc. 1,000 23,438
Total 2,067,775
Tires - 0.4%
Goodyear Tire & Rubber Co. 8,800 363,000
Tobacco - 0.4%
RJR Holdings Group, Inc. 7,100 197,913
UST, Inc. 4,500 133,875
Total 331,788
Trucks - 1.0%
Air Express International Corp. 11,500 270,250
Arkansas Best Corp. 1,000 9,000
Consolidated Freightway, Inc. 12,000 265,500
Expeditors International of Washington, Inc. 15,000 337,500
Total 882,250
Utilities - 0.3%
Columbia Gas System, Inc. * 3,200 101,600
Pacific Enterprises, Inc. 1,090 26,705
Williams Companies Inc. 4,600 160,425
Total 288,730
Total Common Stocks (Cost - $63,379,059) 70,917,524
Other Equity Securities - 3.4%
Highbridge Capital Corp. Limited Partnership 1,561 2,046,414
S&P 500 Depositary Receipts 15,500 843,296
Total Other Equity Securities (Cost - $2,754,395) 2,889,710
Face
Short-Term Securities - 19.8% Amount
Bank of Ireland (Cayman) Time Deposit, 6.210% due 7/3/95 $1,634,870 1,634,870
Fuji Bank (Cayman) Time Deposit, 6.050% due 7/3/95 3,000,000 3,000,000
Harris Bank Time Deposit, 5.860% due 7/3/95 40,000 40,000
Prudential Securities Repurchase Agreement 5.780% due 6,027,287 6,027,287
6/30/95. (Collateralized by $28,001,812 FNMA Strip Tranche,
9.500% due 9/01/22 with a market value of $6,208,353)
U.S. Treasury Bill, 5.470% due 9/21/95 # 2,952,000 2,914,413
U.S. Treasury Bill, 5.490% due 11/30/95 # 3,086,000 $3,013,424
U.S. Treasury Bill, 5.520% due 12/14/95 # (b) 330,000 321,247
Total Short-Term Securities (Cost - $16,951,241) 16,951,241
Total Long Portfolio - 106.0% (Cost - $83,084,695) 90,758,475
Other Assets and Liabilities - (6.0%)
Other assets 284,721
Payable for Money Manager fees -106,957
Market value of securities sold short (Cost - $245,625) -243,750
Payable for loaned securities 4,634,870
Other accrued expenses and liabilities -457,734
Other assets and liabilities, net 5,158,590
Net Assets - 100.0%
Applicable to 7,244,571 outstanding $.001 par value shares
(authorized 500,000,000 shares) $85,599,885
Net asset value per share $11.82
Components of Net Assets as of June 30, 1995
Capital stock at par value ($.001) $7,245
Capital stock in excess of par value 74,598,254
Undistributed net investment income 502,045
Accumulated net realized gain on investments, financial futures contracts,
and short sales 2,697,717
Net unrealized appreciation on investments and financial futures contracts,
and short sales 7,794,624
$85,599,885
Short Portfolio - (0.3%)
Common Stocks - (0.3%)
Telecommunication
Compression Labs (Cost - $245,625) 25,000 $243,750
<FN>
* Non-income producing security
+ See Note 2 to the Financial Statements
++ Rounds to less than 0.0%.
# Interest rate shown represent the yield to maturity at the time of purchase
(a) This security or a portion of this security is held in a segregated account as collateral for the short
portfolio.
(b) Security pledged as collateral for financial futures contracts
See Notes to the Financial Statements
</FN>
</TABLE>
TIFF BOND FUND
Graph: Comparison of change in value of $10,000 investment in TIFF Bond
Fund and the Lehman Aggregate Bond Index where the Y-axis ranges
from $9,500 to 11,500 and the X-axis ranges from 5/31/95 to 6/30/95.
Performance Evaluation
The Fund has produced satisfactory absolute returns since its inception 13
months ago (11.8% net of all expenses), but it has underperformed slightly its
primary benchmark - the Lehman Aggregate Bond Index. The reason is
straightfoward: despite outperforming its peer group of taxable bond funds by
120 basis points since inception (Lipper Intermediate Investment-Grade Debt
Funds up 10.6%), the Fund's managers have produced only mediocre returns
relative to their benchmarks since the Fund's inception. One manager is
comfortably ahead of its bogey, two are very slightly ahead, and the fourth is
moderately behind. With one exception, FAI has allocated the Fund's assets
across managers in a sector-neutral manner. The exception has been a small
tilt toward foreign bonds via FFTW, which proved profitable in 1994 but has
hampered results in 1995. The cumulative impact of the Fund's tilt toward
foreign bonds has been about (15 bp) since the Fund's inception. In light of
the recent relative strength of U.S. bonds, FAI is maintaining a small (5.3%)
tilt in favor of foreign issues (5.3% = FFTW's 9.7% allocation times foreign
bonds' 55% weight in FFTW's benchmark).
Policy Considerations
The Fund's chief aim is to help foundations weather deflationary times without
being forced to liquidate their equity holdings at depressed prices. As a form
of deflation "insurance," bonds emphasized by the Fund (intermediate or longer-
term, high quality, non-callable) tend to perform poorly when investors are
concerned by unexpected strength in the economy, as they were throughout
much of 1994, and they tend to perform well when inflation concerns ease, as
they have in 1995. The recent decline in bond yields has boosted significantly
the cost of deflation "insurance"; foundations that are adequately "insured"
might consider postponing further bond purchases until the cost falls a bit.
Also, yield differentials between Treasuries on the one hand and many lower-
rated issues on the other have become extremely narrow. Now could be an
opportune time for fiduciaries investing in bonds through means other than TIP
to review guidelines to prevent overreaching by bond managers. (The TIFF
Bond Fund is managed in accordance with strict quality guidelines specified in
the Prospectus.)
TIFF BOND FUND - STATEMENT OF NET ASSETS
June 30, 1995 (Unaudited)
<TABLE> <C> <C>
Face
Amount (a) Value +
Long-Term Investments - 91.6%
Bonds - 90.7%
U.S. Treasury Securities - 21.0%
U.S. Treasury Note, 7.375% due 5/15/96 55,000 $55,756
U.S. Treasury Note, 6.875% due 10/31/96 495,000 501,341
U.S. Treasury Note, 6.250% due 1/31/97 430,000 432,688
U.S. Treasury Note, 6.500% due 8/15/97 310,000 313,971
U.S. Treasury Note, 5.750% due 10/31/97 1,045,000 1,043,041
U.S. Treasury Note, 5.375% due 5/31/98 540,000 532,743
U.S. Treasury Note, 5.875% due 3/31/99 145,000 144,683
U.S. Treasury Note, 6.750% due 5/31/99 1,000,000 1,026,561
U.S. Treasury Note, 6.750% due 6/30/99 185,000 189,972
U.S. Treasury Note, 6.875% due 7/31/99 80,000 82,550
U.S. Treasury Note, 5.875% due 6/30/00 665,000 661,882
U.S. Treasury Note, 6.375% due 8/15/02 400,000 404,374
U.S. Treasury Note, 6.250% due 2/15/03 830,000 831,814
U.S. Treasury Note, 5.750% due 8/15/03 300,000 291,093
U.S. Treasury Note, 6.500% due 5/15/05 450,000 459,281
U.S. Treasury Bond, 12.000% due 8/15/13 125,000 185,039
U.S. Treasury Bond, 8.750% due 5/15/17 2,265,000 2,793,733
U.S. Treasury Bond, 7.875% due 2/15/21 1,570,000 1,787,838
U.S. Treasury Bond, 6.250% due 8/15/23 525,000 496,453
U.S. Treasury Bond, 7.500% due 11/15/24 115,000 127,363
U.S. Treasury Bond, 7.625% due 2/15/25 240,000 270,750
U.S. Treasury Strip, 6.140% due 8/15/99 # 1,100,000 863,994
U.S. Treasury Strip, 6.935% due 2/15/15 # 1,500,000 395,625
U.S. Treasury Strip, 7.405% due 5/15/18 # 2,695,000 560,072
Total U.S. Treasury Securities (Cost - $14,018,777) 14,452,617
U.S. Government and Agency Obligations - 4.6%
Federal Home Loan Bank, 8.460% due 12/20/99 200,000 202,176
Federal Home Loan Mortgage Corp., 6.140% due 3/18/99 120,000 119,908
Federal Home Loan Mortgage Corp., 7.188% due 9/15/99 450,000 459,416
Federal Home Loan Mortgage Corp., 6.350% due 3/7/01 510,000 503,509
Federal Home Loan Mortgage Corp., 7.030% due 4/5/04 170,000 172,188
Federal National Mortgage Assn., 5.200% due 7/10/98 450,000 438,223
Federal National Mortgage Assn., 6.200% due 7/10/03 345,000 331,330
Federal National Mortgage Assn., 6.250% due 8/12/03 145,000 140,253
Federal National Mortgage Assn., 6.080% due 9/3/03 200,000 190,458
Federal National Mortgage Assn., 5.950% due 10/27/08 140,000 128,514
Tennessee Valley Authority, 7.850% due 6/15/44 500,000 500,584
Total U.S. Government and Agency Obligations (Cost - $3,067,898) 3,186,559
Corporate Obligations - 18.6%
American Airlines, Inc., 8.040% due 9/16/11 140,000 145,527
Applied Material, Inc., 8.000% due 9/1/04 500,000 534,086
Bank of New York Co., Inc., 7.875% due 11/15/02 500,000 529,241
Boeing Co., 7.875% due 4/15/43 380,000 403,935
California Petroleum Transport, 8.520% due 4/1/15 325,000 350,709
Crown Cork And Seal Co., Inc., 8.375% due 1/15/05 500,000 554,134
Cyprus Amax Minerals Co., 7.375% due 5/15/07 305,000 309,503
Dr. Pepper/7 Up Cos, Inc., 7.500% due 11/1/02 330,000 292,050
Electronic Data Systems (144A), 7.125% due 5/15/05 (b) 500,000 511,386
Ford Capital BVI., 10.125% due 11/15/00 700,000 805,961
General Electric Capital Corp., 5.625% due 8/23/96 500,000 499,342
Goldman Sachs Group L.P. (144A), 6.100% due 4/15/98 (b) 270,000 265,591
Household Bank, 8.450% due 12/10/02 1,100,000 1,194,772
Hydro-Quebec, 8.050% due 7/7/24 125,000 135,694
International Lease Finance Corp., 7.450% due 5/21/99 170,000 175,346
K-Mart Funding Corp., 8.800% due 7/1/10 345,000 375,359
Lannar Central Partners, 8.120% due 9/15/02 190,000 191,230
Lehman Brothers Holdings, Inc., 9.375% due 1/15/99 370,000 395,574
Nabisco, Inc, 7.550% due 6/15/15 860,000 851,174
Occidental Petroleum Corp., 8.500% due 11/9/01 500,000 541,080
Phibro-Salomon Inc., 11.625% due 8/1/15 205,000 216,534
Prudential, 8.300% due 7/1/25 325,000 323,853
Rodamco NV, 7.300% due 5/15/05 100,000 102,088
Rollins Truck Leasing Co., 7.000% due 3/15/01 400,000 404,122
Swedish Export Credit Corp., 9.875% due 3/15/38 255,000 286,227
Texas Utilities Electric Co., 9.500% due 8/1/99 165,000 181,070
Torchmark Corp., 8.625% due 3/1/17 340,000 353,461
United Air Lines, Inc., 9.020% due 4/19/12 500,000 529,435
W. R. Grace & Co., 8.000% due 8/15/04 1,100,000 1,165,705
WMC Finance Ltd., 6.500% due 11/15/03 170,000 166,136
Total Corporate Obligations (Cost - $12,140,931) 12,790,325
Mortgage-Backed Securities - 33.5%
Federal Home Loan Mortgage Corp. (TBA), 7.500% due 9/13/95 1,000,000 1,003,750
Federal Home Loan Mortgage Corp., 7.000% due 5/1/09 929,251 931,384
Federal Home Loan Mortgage Corp., 7.821% due 7/01/22 558,695 576,329
Federal Home Loan Mortgage Corp., 7.500% due 2/1/23 62,254 62,525
Federal Home Loan Mortgage Corp., 7.500% due 3/15/24 145,268 133,912
Federal Home Loan Mortgage Corp., 7.500% due 4/1/24 1,220,885 1,226,197
Federal Home Loan Mortgage Corp., 7.500% due 8/1/24 1,631,535 1,638,634
Federal Home Loan Mortgage Corp., 8.500% due 9/1/24 1,266,155 1,307,227
Federal Home Loan Mortgage Corp., 7.500% due 12/1/24 431,711 433,590
Federal Home Loan Mortgage Corp., 8.500% due 3/1/25 980,826 1,012,643
Federal National Mortgage Assn., 6.500% due 9/17/95 500,000 481,094
Federal National Mortgage Assn., 6.500% due 4/25/08 183,580 174,779
Federal National Mortgage Assn., 4.750% due 2/25/09 875,000 860,562
Federal National Mortgage Assn., 12.250% due 1/1/11 157,332 177,245
Federal National Mortgage Assn., 8.000% due 9/1/21 1,600,000 1,628,000
Federal National Mortgage Assn., 7.000% due 3/1/24 1,762,000 1,734,627
Federal National Mortgage Assn., 8.000% due 5/1/24 949,460 967,982
Federal National Mortgage Assn., 8.000% due 1/1/25 695,088 708,648
Federal National Mortgage Assn., 8.000% due 5/1/25 2,964,535 3,022,365
Government National Mortgage Assn., 7.000% due 7/15/23 590,519 581,673
Government National Mortgage Assn., 7.000% due 5/15/24 ++ 1,447,171 1,425,492
Government National Mortgage Assn., 7.000% due 6/15/24 ++ 979,085 964,418
Government National Mortgage Assn., 9.500% due 10/15/24 958,932 1,015,535
Government National Mortgage Assn., 6.500% due 1/15/25 976,375 991,444
Total Mortgage-Backed Securities (Cost - $22,321,698) 23,060,055
Asset-Backed Securities - 6.9%
Advanta Credit Card Master Trust FRN, Ser. 1993-2, Class A, 6.293% due 8/31 350,000 351,211
Advanta Credit Card Master Trust FRN, Ser. 1995-A, Class A, 6.240% due 1/1/ 950,000 951,443
Advanta Mortgage Loan Trust, Ser. 1994 - 3, Class A4, 8.490% due 1/25/26 325,000 341,772
Banc One Credit Card Master Trust, Ser. 1994-B, Class A, 7.550% due 12/15/9 150,000 154,688
Capital One Master Trust FRN, Ser. 1995-1, Class A, 6.253% due 6/15/00 900,000 901,556
Case Equipment Loan Trust, Ser. 1995-A, Class A, 7.300% due 3/15/02 329,020 334,600
Contimortgage Home Equity Loan Trust, Ser. 1995-2, Class A, 7.950% due 5/1/ 210,000 216,310
Daimler-Benz Vehicle Trust, Ser. 1994-A, Class A, 5.950% due 12/15/00 132,013 131,831
First USA Credit Card Master Trust FRN, Ser. 1993-3, Class A, 6.313% due 4/ 850,000 853,553
GMAC, Ser. 1993-A, Class A, 4.150% due 3/16/98 79,023 78,428
GMAC, Ser. 1994-A, Class A, 6.300% due 6/15/99 390,200 391,280
Total Asset-Backed Securities (Cost - $4,663,907) 4,706,672
Foreign Government Obligations - 6.1%
Australian Government, 8.750% due 1/15/01 250,000 AUD 177,527
Australian Government, 7.500% due 7/15/05 40,000 AUD 25,252
Bundesobligation, 6.750% due 9/15/99 200,000 DMK 147,948
Buoni Polienalli Del Tes, 8.500% due 8/1/99 420,000,000 ITL 227,220
Canadian Government, 9.000% due 12/1/04 200,000 CAD 155,548
Deutschland Republic, 6.750% due 4/22/03 500,000 DMK 356,575
French Treasury Bill, 7.750% due 4/12/00 2,900,000 FF 612,203
Italy Global Bond, 6.875% due 9/27/23 305,000 ITL 271,692
Japan Government Bond 147, 5.700% due 6/20/02 25,000,000 JPY 351,650
Japan Government Bond 174, 4.600% due 9/20/04 5,000,000 JPY 67,280
Kingdom of Belgium, 9.000% due 6/27/01 5,500,000 BF 212,372
Kingdom of Denmark, 9.000% due 11/15/98 200,000 DK 38,326
Kingdom of Denmark, 8.000% due 3/15/06 300,000 DK 52,814
Netherlands Government, 5.750% due 1/15/04 350,000 NG 209,119
Republic of Argentina, 5.000% due 3/31/23 1,250,000 ARG 596,875
Spanish Government, 7.400% due 7/30/99 20,000,000 ESP 143,620
Spanish Government, 12.250% due 3/25/00 20,000,000 ESP 169,540
Treuhandanstalt Obligation, 6.375% due 7/1/99 200,000 DMK 146,170
United Kingdom Treasury, 8.000% due 12/7/00 30,000 GB 47,289
United Kingdom Treasury, 6.750% due 11/26/04 120,000 GB 169,476
Total Foreign Government Obligations (Cost - $3,903,989) 4,178,496
Total Bonds (Cost - $60,117,200) 62,374,724
Preferred Stock 0.9% Shares
Banco Central Hispanoamericano Capital Ltd., 10.500% Callable 12/31/99 15,000 401,250
Grand Metro Delaware, 9.420% 6,600 183,150
Total Preferred Stock (Cost - $532,152) 584,400
Total Long-Term Investments (Cost - $60,649,352) 62,959,124
Short-Term Investments - 12.4%
Bank Obligations - 2.8%
Bank of Boston (Nassau) Time Deposit, 6.188% due 7/3/95 1,656,000 1,656,000
Bank of Ireland (Cayman) Time Deposit, 6.210% due 7/3/95 306,375 306,375
Total Bank Obligations (Cost - $1,962,375) 1,962,375
U.S. Treasury Obligations - 0.1% #
U.S. Treasury Bill, 5.350% due 8/17/95 ++ 40,000 39,730
U.S. Treasury Bill, 5.390% due 8/31/95 ++ 10,000 9,912
U.S. Treasury Bill, 5.355% due 9/28/95 ++ 15,000 14,801
Total U.S. Treasury Obligations (Cost - $64,443) 64,443
Repurchase Agreements - 9.5%
Morgan Stanley Repurchase Agreement, 6.020% due 7/3/95; Issued 6/30/95
(Collateralized by $2,000,000 U.S. Treasury Note, 4.625% due 8/15/95
with a market value of $2,010,000) 2,000,000 2,000,000
Prudential Securities Repurchase Agreement, 5.780% due 7/3/95
issued 6/30/95 (Collateralized by $4,944,105 FNMA Strip
Tranche, 5.500% due 3/01/09 with a market value of $4,654,814) 4,519,057 4,519,057
Total Repurchase Agreements (Cost - $6,519,057) 6,519,057
Total Short-Term Investments (Cost - $8,545,875) 8,545,875
Total Investments - 104.0% (Cost - $69,195,227) 71,504,999
Other Assets and Liabilities - (4.0%)
Other assets 3,787,078
Payable for securities purchased -5,940,427
Payable for security loans -306,375
Other accrued expenses and liabilities -294,526
Other assets and liabilities, net -2,754,250
Net Assets - 100.0%
Applicable to 6,610,838 outstanding $.001 par value shares $68,750,749
(authorized 500,000,000 shares)
Net asset value per share $10.40
Components of Net Assets as of June 30, 1995 were as follows:
Capital stock at par value ($.001) $6,611
Capital stock in excess of par value 65,054,052
Undistributed net investment income 17,923
Accumulated net realized gain on investments, financial futures contracts and
foreign currency-related transactions 1,372,397
Net unrealized appreciation on investments, financial futures contracts, and
on assets and liabilities denominated in foreign currencies 2,299,766
Net Assets $68,750,749
<FN>
# Interest rate shown represents yield to maturity at the time of purchase.
(a) Face amount stated in U.S. dollars unless otherwise noted.
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities
may be resold in transactions exempt from registration, normally to qualified institutional buyers.
At June 30, 1995, these securities were valued at $776,977 or 1.1% of net assets.
+ See Note 2 to the Financial Statements.
++ Assets currently held in a segregated account as collateral for financial futures contracts.
TBA Security is subject to delayed delivery. See Notes to the Financial Statements.
FRN Floating rate note. Rate shown for the security is as-of June 30, 1995.
</FN>
</TABLE>
TIFF SHORT-TERM FUND
GRAPH: COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN TIFF SHORT-TERM FUND AND THE
MERRILL LYNCH 182-DAY TREASURY BILL INDEX WHERE
THE Y-AXIS RANGES FROM $10,000 TO $10,800 AND THE X-
AXIS RANGES 5/31/94 TO 6/30/95.
Performance Evaluation
The Fund is performing as planned in the following sense: its aim (admittedly
modest) is to outperform its 6-month Treasury Bill benchmark net of all costs.
In its first thirteen months of operations, the Fund has outperformed this
benchmark by 0.4% net of expenses. This margin would have been larger if the
Fund itself were larger; increased assets would permit fixed costs (e.g.,
portfolio accounting) to be spread over a larger asset base. TIP's directors
remain hopeful that an increasing number of foundations will look to the Fund
as a cost-efficient alternative to other cash management vehicles they may be
using. Prospective investors should note that the Fund has outperformed the
Lipper Money Markets Instruments Funds average by 1.5% since the Fund's
inception on May 31, 1994 (Fund up 6.7% versus 5.2% for the Lipper average).
Until the Fund's assets grow, the vendors it employs have agreed to waive fees
as needed to keep the Fund's expense ratio within the bounds specified in the
Prospectus.
Policy Considerations
As experienced foundation fiduciaries, the cooperative's directors recognize
that many foundations seek to control downward fluctuations in the monetary
value of assets earmarked for spending within twelve months by investing them
exclusively in cash equivalents, either directly or via money market funds.
However, TIP studies of the risk and return characteristics of alternate short-
term investment strategies suggest that a short-term income fund whose
average maturity ranges between the one to three months typical of regulated
money market funds and the six months inherent in the TIFF Short-Term
Fund's performance benchmark, arguably comports better with foundations'
short-term investment goals than money market funds per se. Although the
market value of six-month Treasury Bills can decline when short-term interest
rates are rising sharply, there is a very high probability that such instruments
will produce positive total returns in any given month, and a near certainty
that they will do so over time horizons exceeding one month. To ensure that the
Fund's managers do not take undue risks in their efforts to outperform their 6-
month Treasury Bill benchmark, TIP imposes on them a number of restrictions
(codified in the Prospectus), including maturity limits which ensure that the
average duration of the Fund's holdings does not exceed 6 months. Also, while
the Fund may own debt securities of all grades, not more than 5% of its total
assets may be invested in securities rated below investment grade (i.e., rated
below BBB by S&P or Baa by Moody's).
TIFF SHORT-TERM FUND - STATEMENT OF NET ASSETS
June 30, 1995 ( Unaudited)
<TABLE> <C> <C>
<S> Face
Long-Term Investments - 22.5% Amount Value+
Asset-Backed Securities - 12.7%
Bridge/Fire Master Trust, Series 1992-A, Class A, 6.250% due 12/1/99 $458,333 $ 459,048
CARAT, Series 1992-1, Class A3, 5.750% due 12/15/97 2,056,546 2,053,492
Case Equipment Loan, Series 1994-C, Class A1, 7.600% due 12/15/97 1,794,174 1,816,041
Discover Card Trust, Series 1992-A, Class A, 5.500% due 5/16/98 2,062,500 2,054,846
Navistar Financial, Series 1994-C, Class A1, 7.650% due 12/22/97 1,980,233 2,001,320
Premier Auto Trust, Series 1995-2, Class A2, 6.650% due 6/30/96 1,500,000 1,508,909
Standard Credit Card Trust, Series 1992-2, Class A, 5.875% due 7/7/95 1,000,000 999,969
Total Asset-Backed Securities (Cost - $10,869,847) 10,893,625
Corporate Obligations - 9.2%
CIT Group Holdings FRN, 5.780% due 5/2/97 280,000 279,034
FCC National Bank Floating Rate MTN, 5.640% due 2/20/96 280,000 279,416
General Electric Capital Corp. FRN, 5.680% due 5/12/97 280,000 279,181
NationsBank Floating Rate MTN, 6.063% due 6/18/97 4,000,000 3,997,200
Southern California Edison, 9.250% due 6/15/21 3,000,000 3,125,510
Total Corporate Obligations (Cost - $7,966,152) 7,960,341
U.S. Government Agency Obligations - 0.6%
Federal Home Loan Bank FRN, 5.580% due 9/2/97
(Cost - $500,000) 500,000 497,535
Total Long-Term Investments (Cost - $19,335,999) 19,351,501
Short-Term Investments - 145.2%
U.S. Government and Agency Obligations - 77.9% #
Federal Home Loan Bank Discount Note, 6.100% due 7/3/95 10,000,000 9,996,611
U.S. Treasury Bill, 5.640% due 10/12/95 500,000 492,298
U.S. Treasury Bill, 5.570% due 1/4/96 58,000,000 56,422,465
Total U.S. Government and Agency Obligations (Cost - $66,911,374) 66,911,374
Commercial Paper - 49.5% #
Abbey National N.A., 5.860% due 9/21/95 4,000,000 3,946,609
Coca Cola Co., 5.950% due 11/3/95 4,000,000 3,917,361
Dupont (E.I.) De Nemours & Co, 5.850% due 9/21/95 4,000,000 3,946,700
Falcon Asset Securitization Program, 5.920% due 8/21/95 3,000,000 2,974,840
Ford Motor Credit Corp., 6.010% due 7/17/95 4,000,000 3,989,316
Golden Peanut Corp., 5.700% due 10/5/95 4,000,000 3,939,200
Hanson Finance plc (UK), 5.900% due 9/6/95 4,000,000 3,956,078
Kingdom of Sweden, 6.050% due 10/20/95 4,000,000 3,925,383
U.S. Borax Inc., 6.200% due 7/3/95 4,000,000 3,998,622
U.S. West Communications, 5.870% due 9/14/95 4,000,000 3,951,083
Vermont America Corp., 5.940% due 7/27/95 4,000,000 3,982,840
Total Commercial Paper (Cost - $42,528,032) 42,528,032
Bank Obligations - 17.8%
Bank of America Bank Note, 5.935% due 9/21/95 $4,000,000 $4,000,000
Bank of Boston (Nassau) Time Deposit, 6.188% due 7/5/95 83,000 83,000
Chemical Bank Bankers Acceptance, 5.900% due 8/8/95 # 1,800,000 1,788,790
Harris Trust & Savings CD, 6.250% due 7/3/95 1,369,000 1,369,000
Republic National Bank NY London Time Deposit, 6.375% due 7/3/95 4,000,000 4,000,000
Societe Generale Yankee CD, 6.000% due 8/14/95 4,000,000 4,000,000
Total Bank Obligations (Cost - $15,240,790) 15,240,790
Total Short-Term Investments (Cost - $124,680,196) 124,680,196
Total Investments - 167.7% (Cost -$144,016,195) 144,031,697
Other Assets and Liabilities - (67.7%)
Other assets 249,254
Accounts payables for securities purchased -58,240,394
Other accrued expenses and liabilities -172,304
Other assets and liabilities, net -58,163,444
Net Assets - 100.0%
Applicable to 8,531,461 shares outstanding $.001 par value
(authorized 500,000,000 shares) $85,868,253
Net asset value per share $10.06
Components of Net Assets as of June 30, 1995 were as follows:
Capital stock at par value ($.001) $8,531
Capital stock in excess of par value 85,374,511
Undistributed net investment income 3,854
Accumulated net realized gain on investments and financial futures contracts 465,855
Net unrealized appreciation on investments and financial futures contracts 15,502
Net Assets $85,868,253
<FN>
+ See Note 2 to the Financial Statements.
# Interest rate represents yield to maturity at the time of purchase.
MTN Medium term note
FRN Floating rate note. Rate shown is the coupon rate at June 30, 1995.
</FN>
</TABLE>
STATEMENT OF OPERATIONS
Period from January 1, 1995 to June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
TIFF Multi-Asset TIFF Int'l Equity
Fund for the Period Fund for the Six
from 3/31/95* Months Ended
to 6/30/95 6/30/95
Investment income
Interest $420,109 $502,829
Dividends (net of withholding taxes of $8,421 for Multi-Asset
Fund and $187,325 for Int'l Equity Fund) 88,345 1,240,989
Total investment income 508,454 1,743,818
Operating expenses
Investment advisory fees 24,431 78,855
Money Manager fees 25,678 157,275
Custodian fees 27,591 175,305
Administration fees 8,055 35,593
Shareholder recordkeeping fees 2,084 10,431
Audit fees 2,090 25,512
Legal fees 2,238 3,381
Insurance expense 1,061 5,064
Amortization of organizational costs 495 2,378
State registration filing fees 7,697 27,635
Miscellaneous fees and expenses 14,830 65,937
Total operating expenses 116,250 587,366
Investment income, net 392,204 1,156,452
Net realized and unrealized gain (loss) on investments, financial futures
and options contracts, short sales and foreign currency-related transactions
Net realized gain (loss) on investments 340,747 -1,261,443
Net realized (loss) on short sales -62,961 -
Net realized gain (loss) on financial futures and options contracts -81,877 876,631
Net realized (loss) from foreign currency-related transactions -4,788 -478,444
Net unrealized appreciation on investments 1,314,263 4,217,846
Net unrealized (depreciation) on short sales -18,955 -
Net unrealized (depreciation) on financial futures and options cont -336,400 -495,497
Net unrealized (depreciation) on translation of assets and
liabilities in foreign currencies -586 -403,473
Net realized and unrealized gain on investments,
financial futures and options contracts, short sales and foreign
currency-related transactions 1,149,443 2,455,620
Net increase in net assets resulting from operations $ 1,541,647 $ 3,612,072
TIFF Emerging TIFF U.S. Equity
Fund for the Six Fund for the Six
Months Ended Months Ended
6/30/95 6/30/95
Investment income
Interest $97,570 $661,617
Dividends (net of withholding taxes of $74,141 for Emerging 363,016 523,259
Markets and $18 for U.S. Equity Fund)
Miscellaneous 33 2,615
Total investment income 460,619 1,187,491
Operating expenses
Investment advisory fees 27,278 50,362
Money Manager fees 188,566 47,091
Custodian fees 151,706 70,101
Administration fees 12,277 22,753
Shareholder recordkeeping fees 4,637 9,275
Audit fees 9,262 16,955
Insurance expense 1,762 3,249
Amortization of organizational costs 828 1,526
State registration filing fees 4,295 16,097
Miscellaneous fees and expenses 21,316 27,723
Total operating expenses 421,927 265,132
Investment income, net 38,692 922,359
Net realized and unrealized gain (loss) on investments, financial
futures contracts, short sales and foreign currency-related transactions
Net realized gain (loss) on investments -6,281,851 1,964,629
Net realized (loss) on short sales - -131,883
Net realized gain on financial futures contracts - 1,716,115
Net realized (loss) from foreign currency-related transactions -69,945 -
Net unrealized appreciation on investments 3,736,932 7,229,805
Net unrealized (depreciation) short sales - -267,442
Net unrealized (depreciation) on financial futures contracts - -162,475
Net unrealized (depreciation) on translation of assets and
liabilities in foreign currencies -11,054 -
Net realized and unrealized gain (loss) on investments,
financial futures contracts, short sales and foreign
currency-related transactions -2,625,918 10,348,749
Net increase (decrease) in net assets resulting from operation $ -2,587,226 $ 11,271,108
TIFF Bond Fund TIFF Short-Term
for the Six Months for the Six Months
Ended 6/30/95 Ended 6/30/95
Investment income
Interest $ 2,825,627 $ 2,435,044
Dividends 6,406 -
Total investment income 2,832,033 2,435,044
Operating expenses
Investment advisory fees 24,463 11,450
Money Manager fees 44,845 75,707
Custodian fees 61,016 31,470
Administration fees 16,770 25,854
Shareholder recordkeeping fees 4,713 4,878
Audit fees 14,687 18,194
Insurance expense 2,407 3,692
Amortization of organizational costs 1,126 1,741
State registration filing fees 9,676 4,396
Miscellaneous fees and expenses 26,551 31,546
Total operating expenses 206,254 208,928
Waiver of investment advisory and a portion of Money Manager
and administration fees - -63,504
Total expenses 145,424
Investment income, net 2,625,779 2,289,620
Net realized and unrealized gain (loss) on investments, financial
futures contracts, and foreign currency-related transactions
Net realized gain on investments 2,124,018 466,149
Net realized gain on financial futures contracts 182,169 5,242
Net realized (loss) from foreign currency-related transactions -460,226 -
Net unrealized appreciation on investments 3,281,771 25,471
Net unrealized appreciation on financial futures contracts 1,300 -
Net unrealized appreciation on translation of assets and
liabilities in foreign currencies 32,328 -
Net realized and unrealized gain on investments, financial
futures contracts, and foreign currency-related transaction 5,161,359 496,862
Net increase in assets resulting from operations $ 7,787,139 $ 2,786,482
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Period from January 1, 1995 to June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C> <C>
TIFF Multi-Asset TIFF Int'l Equity
Fund for the Period TIFF Int'l Equity Fund for the Period
from 3/31/95* Fund for Six Months from 5/31/94
to 6/30/95 Ended 6/30/95 to 12/31/94
Increase (decrease) in net assets from operations
Investment income, net $392,204 $1,156,452 $373,852
Net realized gain (loss) from investments, short
sales, financial futures and options contracts
and foreign currency-related transactions 191,121 -863,256 -654,908
Net unrealized appreciation (depreciation) on
investments, financial futures and options
contracts and translation of assets and
liabilities in foreign currencies 958,322 3,318,876 -607,472
Net increase (decrease) in net assets
resulting from operations 1,541,647 3,612,072 -888,528
Distributions to members from:
Investment income, net - - 373,852
Amounts in excess of investment income, net - - 46,147
Net realized gain on investments, financial futures
and options contracts, and foreign
currency-related transactions - - -
Distributions required for excise tax purposes in
excess of net realized gain on investments,
financial futures and options contracts, and
foreign currency-related transactions - - 658,310
Total distributions - - 1,078,309
Capital share transactions, net 56,191,982 30,837,777 91,175,644
Total increase in net assets 57,733,629 34,449,849 89,208,807
Net assets
Beginning of period - 89,308,767 99,960
End of period $57,733,629 $123,758,616 $89,308,767
Undistributed net investment income $392,204 $1,156,452 $ -
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
TIFF Emerging TIFF Emerging TIFF U.S. Equity TIFF U.S
Markets Fund Markets Fund Fund for the Six Equity Fund for
for the Six Months for the period from Months Ended the Period from
Ended 6/30/95 5/31/94 to 12/31/94 6/30/95 5/31/94 to 12/31/94
Increase (decrease) in net assets from operations
Investment income, net $ 38,692 $ 72,654 $ 922,359 $ 706,663
Net realized gain (loss) from investments,
short sales, financial futures contracts,
and foreign currency-related transactions -6,351,796 (32,998) 3,548,861 54,454
Net unrealized appreciation (depreciation) on
investments, short sales, financial futures
contracts, and translation of assets and
liabilities in foreign currencies 3,725,878 -5,917,826 6,799,888 994,742
Net increase (decrease) in net assets
resulting from operations -2,587,226 -5,878,170 11,271,108 1,755,859
Distributions to members from:
Investment income, net - 41,438 420,314 706,663
Amounts in excess of investment income, net - - - 31,843
Net realized gain on investments, financial futures
contracts, short sales, and foreign
currency-related transactions - - - 54,454
Distributions required for excise tax purposes in
excess of net realized gain on investments,
financial futures contracts, and foreign
currency-related transactions - 297,222 - 857,680
Total distributions - 338,660 420,314 1,650,640
Capital share transactions, net 8,305,183 56,249,037 16,576,025 58,067,837
Total increase in net assets 5,717,957 50,032,207 27,426,819 58,173,056
Net assets
Beginning of period 50,032,217 10 58,173,066 10
End of period $ 55,570,174 $ 50,032,217 $ 85,599,885 $ 58,173,066
Undistributed net investment income $ 74,918 $ 36,226 $ 502,045 $ -
TIFF Bond TIFF Bond TIFF Short-Term TIFF Short-Term
Fund for the Fund for the Fund for the Six Fund for the Period
Six Months Period from Months Ended from 5/31/94
Ended 6/30/95 5/31/94 to 12/31/94 6/30/95 to 12/31/94
Increase (decrease) in net assets from operations
Investment income, net $ 2,625,779 $ 1,796,149 $ 2,289,620 $ 220,115
Net realized gain (loss) from investments,
financial futures and options contracts, and
foreign currency-related transactions 1,845,961 (463,090) 471,391 17,020
Net unrealized appreciation (depreciation) on
investments, financial futures and options
contracts and translation of assets and
liabilities in foreign currencies 3,315,399 -1,015,633 25,471 -9,969
Net increase in net assets resulting
from operations 7,787,139 317,426 2,786,482 227,166
Distributions to members from:
Investment income, net 2,621,777 1,796,149 2,285,766 220,115
Amounts in excess of investment income, net - 12,110 - 2,906
Net realized gain on investments, financial futures
and options contracts, and foreign
currency-related transactions - - - 17,020
Distributions required for excise tax purposes in
excess of net realized gain on investments,
financial futures and options contracts, and
foreign currency-related transactions - - - 5,029
Total distributions 2,621,777 1,808,259 2,285,766 245,070
Capital share transactions, net -16,085,866 81,162,076 51,084,113 34,301,318
Total increase (decrease) in net assets -10,920,504 79,671,243 51,584,829 34,283,414
Net assets
Beginning of period 79,671,253 10 34,283,424 10
End of period $ 68,750,749 $ 79,671,253 $ 85,868,253 $ 34,283,424
Undistributed net investment income $ 17,923 $ - $ 3,854 $ -
<FN>
See Notes To the Financial Statements
</FN>
</TABLE>
FINANCIAL HIGHLIGHTS
Period from January 1, 1995 to June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C> <C>
TIFF Multi-Asset
Fund for the Period TIFF Int'l Fund TIFF Int'l Fund
from 3/31/95* Six Months Ended for the Period from
to 6/30/95 6/30/95 5/31/94 to 12/31/94
Per share data
Net asset value, beginning of period $10.00 $9.98 $10.00
Income from investment operations
Investment income, net + 0.07 0.09 0.05
Net realized and unrealized gain on investments,
financial futures and options contracts, short sales,
and foreign currency-related transactions 0.3 0.18 0.06
Total from investment operations 0.37 0.27 0.11
Less distributions from:
Investment income, net - - 0.04
Amounts in excess of investment income, net - - 0.01
Amounts in excess of net gain on investments,
options and financial futures contracts, and
foreign currency-related transactions - - 0.08
Total distributions - - 0.13
Net asset value, end of period $10.37 $10.25 $9.98
Total return 3.70%(b) 2.71%(b) 0.98%(b)
Ratios/supplemental data
Net assets, end of period $57,733,629 $123,758,614 $89,308,767
Ratio of expenses to average net assets 0.95%(a) 1.12%(a) 1.08%(a)
Ratio of expenses to average net assets before
expense waivers 0.95%(a) 1.12%(a) 1.27%(a)
Ratio of net investment income to average net
assets 3.21%(a) 2.20%(a) 0.95%(a)
Portfolio turnover 26.93%(b) 24.59%(b) 14.71%(b)
+ Net of waivers which amounted to: n/a n/a 0.01
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
TIFF Emerging TIFF Emerging TIFF U.S. Equity TIFF U.S. Equity
Markets Fund Markets Fund Fund for Six Fund for the
Six Months for the Period from Months Ended Period from 5/1/94
Ended 6/30/95 5/1/94 to 12/31/94 6/30/95 to 12/31/94
Per share data
Net asset value, beginning of period $9.24 $10.00 $10.02 $10.00
Income from investment operations
Investment income, net + 0.01 0.01 0.15 0.15
Net realized and unrealized gain (loss) on short sales,
investments, financial futures and options contracts,
and foreign currency-related transactions -0.51 -0.71 1.72 0.19
Total from investment operations -0.50 -0.70 1.87 0.34
Less distributions from:
Investment income, net - 0.01 0.07 0.15
Net realized gain on short sales, investments,
financial futures and options contracts, and
foreign currency-related transactions - - - 0.01 0.01
Amounts in excess of net gain on short sales,
investments, financial futures and options contracts,
and foreign currency-related transactions - 0.05 - 0.16
Total distributions - 0.06 0.07 0.32
Net asset value, end of period $8.74 $9.24 $11.82 $10.02
Total return -5.52%(b) -6.97%(b) 18.71%(b) 3.49%(b)
Ratios/supplemental data
Net assets, end of period $55,750,174 $50,032,217 $85,599,885 $58,173,066
Ratio of expenses to average net assets 1.80%(a) 1.83%(a) 0.79%(a) 0.85%(a)
Ratio of expenses to average net assets before 1.80%(a) 2.25%(a) 0.79%(a) 1.06%(a)
expense waivers
Ratio of net investment income to average net
assets 0.17%(a) 0.40%(a) 2.75%(a) 2.52%(a)
Portfolio turnover 50.08%(b) 26.37%(b) 55.91%(b) 44.59%(b)
+ Net of waivers which amounted to: n/a 0.01 n/a 0.01
TIFF Bond Fund TIFF Bond TIFF Short-Term TIFF Short-Term
Six Months Ended for the Period Six Months Ended for the Period
6/30/95 from 5/1/94 to 6/30/95 from 5/1/94 to
12/31/94 12/31/94
Per share data
Net asset value, beginning of period $9.68 $10.00 $10.00 $10.00
Income from investment operations
Investment income, net + 0.36 0.36 0.29 0.28
Net realized and unrealized gain (loss) on financial
futures and options contracts, and investments 0.72 -0.32 0.06 0.02
Total from investment operations 1.08 0.04 0.35 0.30
Less distributions from:
Investment income, net 0.36 0.36 0.29 0.28
Amounts in excess of investment income, net - 0 - 0.00
Net realized gain on financial futures and options
contracts, and investments - 0 - 0.01
Amounts in excess of net gain on financial futures
and options contracts, and investments - 0 - 0.01
Total distributions 0.36 0.36 0.29 0.30
Net asset value, end of period $10.40 $9.68 $10.06 $10.00
Total return 11.29%(b) 0.46%(b) 3.49%(b) 3.10%(b)
Ratios/supplemental data
Net assets, end of period $68,750,749 $79,671,253 $85,868,253 $34,283,424
Ratio of expenses to average net assets 0.57%(a) 0.62%(a) 0.38%(a) 0.40%(a)
Ratio of expenses to average net assets before
expense waivers 0.57%(a) 0.94%(a) 0.55%(a) 1.72%(a)
Ratio of net investment income to average net 7.25%(a) 6.37%(a) 6.00%(a) 4.98%(a)
assets
Portfolio turnover 210.58%(b) 162.06%(b) n/a n/a
+ Net of waivers which amounted to: n/a $0.02 $0.01 $0.08
<FN>
See Notes To The Financial Statements
(a) Annualized
(b) Not annualized
n/a Not applicable
</FN>
</TABLE>
TIFF INVESTMENT PROGRAM, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
1. Organization
TIFF Investment Program, Inc. ("TIP") was organized as a Maryland
corporation on December 23, 1993 and is registered under the
Investment Company Act of 1940, as amended, as an open-end,
management investment company. TIP currently has six Funds. The
six active Funds are: TIFF Multi-Asset Fund ("Multi-Asset"), TIFF
International Equity Fund ("International Equity"), TIFF Emerging
Markets Fund ("Emerging Markets"), TIFF Bond Fund ("Bond"), and
TIFF Short-Term Fund ("Short-Term"). The costs incurred by TIP in
connection with the organization and initial registration of shares are
being amortized on a straight-line basis over a sixty-month period.
The unamortized balance of organizational expenses at June 30, 1995
was $69,551.
2. Summary of Significant Accounting Policies
Securities
All securities transactions are recorded on a trade date basis. Interest
income and expense are recorded on an accrual basis. The Funds
amortize discount or premium on a daily basis to interest income.
Dividend income is recorded on the ex-dividend date, except certain
dividends from foreign securities which are recorded as soon as the
funds are notified. The Funds use the specific identification method for
determining gain or loss on sales of securities.
Income Tax
There is no provision for Federal income or excise tax since each Fund
will elect to be taxed as a regulated investment company ("RIC") and
intends to comply with the requirements of Subchapter M of the
Internal Revenue Code applicable to RICs and to distribute all of its
taxable income. Net realized losses attributable to security
transactions after October 31 are treated as arising on the first day of a
Fund's next fiscal year. The Funds may be subject to foreign taxes on
income, gains on investments or currency repatriation. The Funds
accrue such taxes as applicable. At December 31, 1994 the Bond Fund
had a capital loss carry forward of $151,717 which may be available to
offset future realized capital gains, if any. This amount will expire
December 31, 2002.
Valuation
All investments are valued daily at their market price, which results in
unrealized gains or losses. Securities traded on an exchange are
valued at their last sales price on that exchange. Securities for which
over-the-counter market quotations are available are valued at the
latest bid price. Deposits, repurchase agreements and reverse
repurchase agreements are generally valued at their cost plus accrued
interest. Securities purchased with sixty days or less to maturity are
priced at amortized cost which approximates fair value. The value of
other investments is determined under procedures established by TIP's
Board of Directors.
Expenses
Expenses directly attributed to each Fund are charged to that Fund's
operations; expenses which are applicable to all Funds are allocated
among them based on their respective average daily net assets. The
adviser waived $11,450, and the administrator waived $13,049 for the
Short Term-Fund during the six-month period ended June 30, 1995.
The Short-Term Fund's Money Manager waived $39,005 in fees
during the six-month period ended June 30, 1995.
Dividends to Shareholders
It is the policy of Bond and Short-Term, Multi-Asset, U.S. Equity,
International Equity, and Emerging Markets to declare dividends
daily, quarterly, semi-annually, and annually, respectively, from net
investment income. Dividends are paid in cash or reinvested monthly,
quarterly, semi-annually, and annually, respectively.
Dividends from net short-term capital gains and net long-term capital gains of
each Fund, if any, are normally declared and paid annually, but each Fund may
make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that a net realized
capital gain can be reduced by a capital loss carryover, such gain will not be
distributed.
The classification of income and capital gains distributions is determined in
accordance with income tax regulations. Permanent book and tax differences
relating to shareholder distributions will result in reclassifications to paid-
in capital and may affect net investment income per share. Undistributed net
investment income, accumulated net investment loss, or distributions in excess
of net investment income may include temporary book and tax differences
which will reverse in a subsequent period.
Currency Translation
Assets and liabilities denominated in foreign currencies and commitments
under forward exchange currency contracts are translated into U.S. dollars at
the mean of the quoted bid and asked prices of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the rates
of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated at exchange rates prevailing when accrued.
Unrealized net currency gains and losses from valuing foreign currency-
denominated assets and liabilities at period-end exchange rates are reflected
as a component of net unrealized appreciation (depreciation).
3. Investment Advisory Agreement and Money Manager Agreements
TIP's Board of Directors has approved investment management agreements
with FAI. Each Fund pays FAI a maximum monthly fee calculated by
applying the following annual basis point ("bp") rates to such Fund's average
daily net assets for the month (100 bp equals 1.00%):
Multi- Int'l Emerging U.S. Short-
Assets Asset Equity Markets Equity Bond Term
On the first $500 million 20 bp 15 bp 15 bp 15 bp 10 bp 3 bp
On the next $500 million 18 bp 13 bp 13 bp 13 bp 8 bp 3 bp
On the next $500 million 15 bp 11 bp 11 bp 11 bp 6 bp 2 bp
On the next $500 million 13 bp 9 bp 9 bp 9 bp 5 bp 2 bp
On the next $500 million 11 bp 7 bp 7 bp 7 bp 4 bp 1 bp
On the remainder
(<$2.5 billion) 9 bp 5 bp 5 bp 5 bp 3 bp 1 bp
TIP's Board of Directors has approved Money Manager agreements with each
of the Money Managers. Money Managers will receive annual management
fees equal to a stated percentage of the value of Fund assets under management
that is adjusted upwards or downwards, proportionately, to reflect actual
investment performance over the applicable time period relative to a chosen
benchmark rate of return. Certain Money Managers, however, will receive
management fees equal to a flat percentage per annum of assets under
management with a single rate or on a descending scale.
The following identifies Money Managers who provide services to the Funds
and the minimum and maximum fee rate. Unless otherwise indicated, the
management fee received by a Money Manager varies based on the Money
Manager's investment performance:
Fee as % of Assets Managed
MINIMUM MAXIMUM
TIFF Multi-Asset Fund
Bee & Associates 0.15 2.00
Blairlogie Capital Management 0.60* 0.95
Lazard Freres Asset Management 0.50** 0.50
A. Gary Shilling & Co., Inc. 0.15 2.00
TCW Funds Management, Inc. 0.50* 0.75
Wellington Management Company 0.35* 0.45
TIFF International Equity Fund
Blairlogie Capital Management Ltd. 0.60* 0.95
Delaware International Advisers Ltd. 0.30* 0.50
Harding, Loevner Management, L.P. 0.10 1.50
Marathon Asset Management Ltd. 0.15 1.60
Warburg Investment Management International Ltd. 0.50* 0.50
TIFF Emerging Markets Fund
BEA Associates 0.60* 0.95
Blairlogie Capital Management Ltd. 0.60* 0.95
Emerging Markets Management 1.00* 1.25
Genesis Asset Manager, Ltd. 0.60* 1.10
TIFF U.S. Equity Fund
Aronson + Fogler Investment Management 0.10 0.80
Eagle Capital Management 0.00 2.00
First Quadrant 0.15 3.00
Investment Research Company (Hi Cap) 0.10 1.20
Investment Research Company (Long/Short) 0.10 2.00
Jacobs Levy Equity Management 0.15 1.25
Kayne, Anderson Investment Management, Inc. 0.15 0.65
Martingale Asset Management, L.P. 0.05 0.10
Palo Alto Investors 0.10 2.00
Turner Investment Partners, Inc. 0.15 1.50
Westport Asset Management, Inc. 0.15 2.00
TIFF Bond Fund
Atlantic Asset Management Partners, Inc. 0.10 0.60
Fischer Francis Trees & Watts, Inc. 0.10 0.80
Seix Investments Advisors, Inc. 0.10 0.80
Smith Breeden Associates, Inc. 0.10 0.85
TIFF Short-Term Fund
Fischer Francis Trees & Watts, Inc. 0.15* 0.20
Smith Breeden Associates, Inc. 0.05 0.75
* Money Manager receives a fee that does not include the performance component.
The minimum fee reflects "breakpoints" and is applied only to assets in excess
of the highest "breakpoint".
Pursuant to its Administration Agreement, AMT Capital Services, two
employees of which serve as officers of TIP, earns a fee for providing fund
administration services to TIP according to the following schedule: 0.07% of
the average daily net assets of TIP for the first $350 million, 0.05% for the
next $2.7 billion, 0.04% for the next $2.0 billion, and 0.03% for the average
daily net assets over $5.0 billion under management.
4. Investment Transactions
Purchase cost and proceeds from sales of investment securities, other than
short-term investments, for the period from January 1, 1995 to June 30, 1995
were as follows:
Purchase Cost Proceeds
of Investment Sale of Investments
Portfolio Securities Securities
Multi-Asset $ 40,269,018 $ 7,369,925
International Equity 50,041,923 22,131,969
Emerging Markets 29,987,372 21,823,637
U.S. Equity 56,273,999 29,604,741
Bond 123,098,956 151,589,827
Short-Term 329,822,766 324,045,652
The components of net unrealized appreciation (depreciation) of investments
based on Federal tax cost at June 30, 1995 for each Portfolio were as follows:
Net Appreciation
Fund Appreciation Depreciation (Depreciation)
Multi-Asset $ 1,768,830 $ 454,567 $ 1,314,263
International Equity 8,581,433 5,141,779 3,439,654
Emerging Markets 3,587,738 5,769,800 (2,182,062)
U.S. Equity 8,956,570 1,282,790 7,673,780
Bond 2,361,641 51,869 2,309,772
Short-Term 27,134 11,632 15,502
Forward Foreign Exchange Currency Contracts
The Funds enter into forward foreign exchange currency contracts in order to
hedge exposure to changes in foreign currency exchange rates on foreign
portfolio holdings. A forward exchange contract is a commitment to purchase
or sell a foreign currency at a future date at a negotiated forward rate.
Fluctuations in the value of forward foreign currency contracts are recorded for
book purposes as unrealized gains or losses by the Funds. Risks may arise from
the potential inability of a counterparty to meet the terms of a contract and
from unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.
At June 30, 1995, International Equity had outstanding forward foreign exchange
currency contracts to purchase and sell foreign currencies, as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Forward Foreign Exchange Buy Contracts
13,973 Pound Sterling expiring 7/7/95 $ 22,224 $ 22,218 $ (7)
Forward Foreign Exchange Sell Contracts
306,800 Belgian Francs expiring 7/11/95 10,780 10,805 (25)
19,599,744 Belgian Francs expiring 8/31/95 688,000 691,684 (3,684)
948,614 DeutscheMarks expiring 8/31/95 688,000 687,176 824
217,446 Pound Sterling expiring 8/31/95 344,000 345,340 (1,340)
141,504,400 Japanese Yen expiring 8/31/95 1,720,000 1,682,907 37,093
1,065,230 Netherlands Guilders expiring 8/31/95 688,000 689,903 (1,903)
163,873,200 Japanese Yen expiring 7/21/95 1,700,000 1,938,468 (238,468)
142,170,000 Japanese Yen expiring 1/4/96 1,500,000 1,719,687 (219,687)
19,125 Swedish Kroner expiring 7/3/95 2,631 2,628 3
15,753 Singapore Dollars expiring 7/3/95 11,255 11,282 (27)
$ (427,221)
<FN>
At June 30, 1995, Emerging Markets had outstanding forward foreign exchange currency contracts to
purchase and sell foreign currencies as follows:
</FN>
Unrealized
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Forward Foreign Exchange Buy Contracts
286,689 Hong Kong Dollars expiring 7/3/95 $ 37,057 $ 37,054 $ (3)
Forward Foreign Exchange Sell Contracts
423,095 Austrian Schillings expiring 7/3/95 43,428 43,457 (29)
15,630 Austrian Schillings expiring 7/3/95 1,604 1,605 (1)
95 Singapore Dollars expiring 7/3/95 68 68 -
$ (33)
<FN>
At June 30, 1995, Bond had outstanding forward foreign exchange currency contracts to sell foreign
currencies as follows:
</FN>
Unrealized
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Forward Foreign Exchange Sell Contracts
287,488 Australian Dollars expiring 7/27/95 $ 208,716 $ 203,883 $ 4,833
6,263,100 Belgian Francs expiring 7/27/95 217,771 220,769 (2,998)
234,724 Canadian Dollars expiring 7/27/95 169,730 170,784 (1,055)
951,431 DeutscheMarks expiring 7/27/95 683,588 688,287 (4,699)
788,725 Danish Kroner expiring 7/27/95 144,635 145,945 (1,310)
38,943,380 Spanish Pesetas expiring 7/27/95 319,576 320,915 (1,339)
2,966,498 French Francs expiring 7/27/95 605,655 611,866 (6,211)
200,239 Pound Sterling expiring 7/27/95 320,182 318,275 1,906
8,213,288 Japanese Yen expiring 7/27/95 97,661 97,242 419
342,805 Netherlands Guilders expiring 7/27/95 219,339 221,668 (2,329)
$ (12,783)
</TABLE>
Financial Futures Contracts
The Funds are engaged in trading financial futures contracts. The Funds are
exposed to market risk as a result of changes in the value of the underlying
financial instruments. Investments in financial futures require a Fund to "mark
to market" on a daily basis, which reflects the change in the market value of
the contract at the close of each day's trading. Accordingly, variation margin
payments are made or received to reflect daily unrealized gains or losses.
When the contracts are closed, the Fund recognizes a realized gain or loss.
These investments require initial margin deposits which consist of cash or cash
equivalents, equal to approximately 5-10% of the contract amount. The Funds
each maintain a segregated account of cash or other securities with the
custodian sufficient to cover its futures positions. The Funds do not employ
leverage.
At June 30, 1995, the Funds segregated investments in connection with their
margin accounts with respect to their financial futures contracts in the
following amounts:
Segregated
Fund Assets
Multi-Asset $ 900,608
International Equity 2,365,000
Emerging Markets -
U.S. Equity 328,692
Bond 88,402
Short-Term -
At June 30, 1995, Multi-Asset had the following open futures contract:
<TABLE>
<C> <S> <C> <C> <C>
Unrealized
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Long Futures Contracts
10 Jul '95 CAC 40 Index $ 772,216 $ 767,055 $ (5,160)
1 Sept '95 FTSE 100 Index 134,521 132,056 (2,465)
38 Sept '95 Nikkei 225 3,505,837 3,249,941 (255,897)
33 Sept '95 Nikkei 300 913,726 870,920 (42,807)
2 Sept '95 Dax Index 311,777 304,335 (7,442)
10 Sept '95 SFE Ord Dex 372,559 361,377 (11,182)
4 Sept '95 SFE 10 Year Bond 1,745,847 1,739,329 (6,518)
4 Jul '95 Hank Seng Index 239,179 239,101 (78)
2 Sept '95 Lira Bond Index 242,421 239,633 (2,787)
2 Sept '95 Long Gilt 503,607 492,079 (11,528)
2 Sept '95 Bund Index 339,740 335,332 (4,408)
Short Futures Contracts
2 Sept '95 Notl Bond Index (240,355) (235,484) 4,872
4 Sept '95 S&P 500 Index (1,096,000) (1,094,300) 1,700
4 Sept '95 S&P 500 Index (1,101,600) (1,094,300) 7,300
$ (336,400)
At June 30, 1995, International Equity had the following open futures contracts:
Unrealized
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Long Futures Contracts
8 Sept '95 Canadian Dollars $ 580,800 $ 581,760 $ 690
12 Sept '95 Nikkei Index 225 1,106,604 1,026,297 (80,307)
139 Sept '95 Nikkei Index 300 3,660,224 3,668,420 8,196
100 Sept '95 Nikkei Index 300 3,737,972 3,562,854 (175,118)
Short Futures Contracts
14 Sept '95 French Francs (1,411,900) (1,441,300) (29,400)
11 Sept '95 Swedish Francs (1,183,875) (1,203,263) (19,388)
$ (295,327)
At June 30, 1995, U.S. Equity had the following open futures contract:
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Long Futures Contracts
4 Sept '95 S&P 500 $ 1,057,400 $ 1,094,300 $ 36,900
3 Dec '95 S&P 500 807,000 826,875 19,875
3 Dec '95 S&P 500 807,300 826,875 19,575
3 Dec '95 S&P 500 807,450 826,875 19,425
3 Dec '95 S&P 500 807,675 826,875 19,200
10 Dec '95 S&P 500 2,748,500 2,756,250 7,750
$ 122,725
At June 30, 1995, Bond had the following open futures contracts:
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Long Futures Contracts
7 Sept '95 5 Year Treasury Notes $ 749,547 $ 751,406 $ 1,859
Short Futures Contracts
4 Sept '95 10 Year Treasury Notes (437,375) (440,375) (3,000)
4 Sept '95 5 Year Treasury Notes (962,438) (966,094) (3,656)
$ (4,797)
</TABLE>
Short Selling
Multi-Asset as well as U.S. Equity engage in short-selling which obligates the
Funds to replace the security borrowed by purchasing it at the market price at
the time of replacement. Until the security is replaced, a Fund is required to
pay the lender any dividends declared. The Fund would realize a gain if the
security declines in price between the date of the short sale and the date on
which the Fund replaces the borrowed security. The Fund would incur a loss as
a result of the short sale if the price of the security increases between those
dates. Until the Fund replaces the borrowed security it will maintain a
segregated account of cash and/or U.S. Government securities with its
custodian sufficient to cover its short position.
Options
When a Fund purchases an option, an amount equal to the premium paid by the
Fund is included in the Fund's Statement of Assets and Liabilities as an
investment and subsequently "mark-to-market" to reflect the current market
value of the option purchased. The current market value of a purchased option
is the last sale price on the market on which it is principally traded. If the
purchased option expires, the Fund realizes a loss, in the amount of the
premium. If the Fund enters into a closing sale transaction, it realizes a gain
or loss, depending on whether the proceeds from the sale are greater or less
than the cost of the option.
If the Fund exercises a call option, the cost of the securities acquired by
exercising the call is increased by the premium paid to buy the call. If the
Fund exercises a put option, it realizes a gain or loss from the sale of the
underlying security and the proceeds from such sale are decreased by the
premium originally paid.
5. Repurchase and Reverse Repurchase Agreements
Each Fund may enter into repurchase agreements under which a bank or
securities firm that is a primary or reporting dealer in U.S. Government
securities agrees, upon entering into a contract, to sell U.S. Government
securities to a Fund and repurchase such securities from such Fund at a
mutually agreed upon price and date.
Each Fund is also permitted to enter into reverse repurchase agreements under
which a primary or reporting dealer in U.S. Government securities purchases
U.S. Government securities from a Fund and such Fund agrees to repurchase
the securities at an agreed upon price and date.
Each Fund will engage in repurchase and reverse repurchase transactions with
parties selected on the basis of such party's creditworthiness. Securities
purchased subject to repurchase agreements must have an aggregate market
value greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, such Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
6. Capital Share Transactions
As of June 30, 1995, there were 3,000,000,000 shares of $0.001 par value
capital stock authorized. Transactions in capital stock were as follows for the
period from January 1, 1995 to June 30, 1995:
Multi-Asset Shares Amount
Shares Sold 5,583,788 $ 56,216,713
Shares Reinvested - -
Exit/Entrance Fees - 145,119
5,583,788 56,361,832
Shares Redeemed (16,465) (169,850)
Net Increase 5,567,323 $ 56,191,982
International Equity
Shares Amount
Shares Sold 3,964,041 $ 34,634,207
Shares Reinvested - -
Exit/Entrance Fees - 262,802
3,964,041 34,897,009
Shares Redeemed (841,157) (4,059,232)
Net Increase 3,122,884 $ 30,837,777
Emerging Markets Shares Amount
Shares Sold 1,103,334 $ 9,861,569
Shares Reinvested - -
Exit/Entrance Fees - 90,396
1,103,334 19,951,965
Shares Redeemed (141,508) (11,646,782)
Net Increase 961,826 $ 8,305,183
U.S. Equity Shares Amount
Shares Sold 2,095,437 23,759,883
Shares Reinvested 27,805 306,414
Exit/Entrance Fees - 47,506
2,123,242 24,113,803
Shares Redeemed (686,199) (7,537,778)
Net Increase 1,437,043 $ 16,576,025
Bond Shares Amount
Shares Sold 6,323,687 $ 61,846,177
Shares Reinvested 113,287 1,132,986
Exit/Entrance Fees - -
6,436,974 62,979,163
Shares Redeemed (8,056,541) (79,065,029)
Net (Decrease) (1,619,567) $ (16,085,866)
Short-Term Shares Amount
Shares Sold 7,848,611 $ 78,566,661
Shares Reinvested 197,685 2,001,326
Exit/Entrance Fees - -
8,046,296 80,567,987
Shares Redeemed (2,943,751) (29,483,874)
Net Increase 5,102,545 $ 51,084,113
7. Security Lending
The Funds receive securities issued or guaranteed by the U.S. Government or
its agencies or cash as collateral against the loaned securities, in an amount
at least equal to 100% of the current market value of the loaned securities. At
June 30, 1995, all collateral received was cash and was subsequently invested
in cash equivalents.
As of June 30, 1995, the value of the loaned securities outstanding and the
related collateral was as follows:
Value of Loaned
Securities Collateral
Multi-Asset $ 4,187,000 $ 4,558,400
International Equity 3,304,864 3,754,864
Emerging Markets 1,668,850 1,675,750
U.S. Equity 4,172,370 4,634,870
Bond 306,375 306,375
Short Term - -
8. Delayed Delivery Transactions
The Funds may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities and the
date when the securities will be delivered and paid for are fixed at the time
the transaction is negotiated. The Funds identify securities as segregated in
its custodial records with a value at least equal to the amount of the purchase
commitment.
Bond enters into "TBA" (to be announced) purchase commitments to purchase
securities for a fixed unit price at a future date beyond customary settlement
time. Although the unit price has been established, the principal value has not
been finalized. However, the amount of the commitment will not fluctuate
more than 2.0% from the principal amount. The Fund holds, and maintains
until the settlement date, cash or high-grade debt obligations in an amount
sufficient to meet the purchase price. TBA purchase commitments may be
considered securities in themselves, and involve a risk of loss if the value of
the security to be purchased declines prior to the settlement date, which risk
is in addition to the risk of decline in the value of the Fund's other assets.
Unsettled TBA purchase commitments are valued at the current market value of the
underlying securities, generally according to the procedures described under
"Valuation" above.
Although the Fund will generally enter into TBA purchase commitments with
the intention of acquiring securities for its portfolio, the Fund may dispose of
a commitment prior to settlement if the Fund's Money Manager deems it
appropriate to do so.
9. Credit Risk in the Emerging Markets
Emerging Markets' relatively large investment in countries with limited or
developing capital markets may involve greater risks than investments in more
developed markets and the prices of such investments may be volatile. While
the Fund's investment in emerging markets debt is limited, the yields of these
obligations reflect perceived credit risk. The consequences of political,
social, or economic changes in these markets may have disruptive effects on the
market prices of the Fund's investment and the income they generate, as well
as the Fund's ability to repatriate such amounts.
ADVISER MONEY MANAGERS
Foundation Advisers, Inc.
P.O. Box 5165 TIFF U.S. Equity Fund
Charlottesville, VA 22905 Aronson + Fogler Investment Management
phone (800) 984-0084 Eagle Capital Management
fax (804) 977-4479 First Quadrant
Investment Research Company
Jacobs Levy Equity Management
CUSTODIAN Kayne, Anderson Investment Management, Inc.
FUND ACCOUNTING AGENT Martingale Asset Management, L.P.
TRANSFER AGENT Palo Alto Investors
DIVIDEND DISBURSING AGENT Turner Investment Partners, Inc.
Investors Bank & Trust Company Westport Asset Management, Inc.
P.O. Box 1537
Boston, MA 02205 TIFF International Equity Fund
Delaware International Advisers, Ltd.
Harding, Loevner Management, L.P.
FUND ADMINISTRATOR Marathon Asset Management, Ltd.
AND DISTRIBUTOR Warburg Investment Management
AMT Capital Services, Inc. International, Ltd.
430 Park Avenue, 17th Floor May also include Money Managers listed
New York, NY 10022 under TIFF Emerging Markets Fund
TIFF Emerging Markets Fund
LEGAL COUNSEL BEA Associates
Dechert Price & Rhoads Blairlogie Capital Management, Ltd.
1500 K Street, N.W. Emerging markets Management
Washington, DC 20005 Genesis Asset Managers, Ltd.
TIFF Bond Fund
INDEPENDENT ACCOUNTANTS Atlantic Asset Management Partners, Inc.
Price Waterhouse LLP Fischer Francis Trees & Watts, Inc.
160 Federal Street Seix Investment Advisors, Inc.
Boston, MA 02110 Smith Breeden Associates, Inc.
TIFF Short-Term Fund
Fischer Francis Trees & Watts, Inc.
Smith Breeden Associates, Inc.
May also manage that portion of U.S. Equity,
International Equity, and Emerging Markets
Funds not yet allocated to equity managers
